Talking Points Memo
NEW YORK (AP) — The Trump administration signaled Wednesday that it intends to pull back on investigating potential abuses by companies in the $1.5 trillion student loan market.
The Consumer Financial Protection Bureau will shutter its student lending office, according to a bureau-wide memo written by its acting director, Mick Mulvaney. The student loan office at the CFPB had been responsible for returning $750 million in relief.
Its responsibilities are being moved under the broad umbrella of “financial education.”
The office had been primarily responsible for an investigation into the troubled student lender Navient, which the CFPB sued last year for unfair and abusive practices. The company also investigated and sued for-profit education company Corinthian Colleges.
A bureau spokesman did not respond to multiple requests for comment on whether the bureau plans to maintain the number of investigators at the bureau looking at student loans, or whether it plans to move forward with the lawsuit against Navient.
This isn’t the first time Mulvaney has reshuffled the bureau to change the CFPB’s priorities. He took similar action with the bureau’s Office of Fair Lending earlier this year, moving the entire department under the bureau’s education department. That office had been focused on discrimination issues, particularly in the auto lending industry.
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