Home News Lawmakers Debate Who’s to Blame for Issues Within the Federal Student Loan System – NASFAA

Lawmakers Debate Who’s to Blame for Issues Within the Federal Student Loan System – NASFAA

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Following reports this year that highlighted a lack of oversight of federal student loan servicers, the House Committee on Financial Services Tuesday gathered higher education experts and consumer advocates to discuss issues within the federal student loan system. While Democrats blamed federal loan servicers for mistreating students, Republicans faulted Congress and the Department of Education (ED) for failing borrowers, arguing that student lending did not fall under the committee’s jurisdiction.

During the four-hour hearing — titled “A $1.5 Trillion Crisis: Protecting Student Borrowers and Holding Student Loan Servicers Accountable” — lawmakers heard from a series of panelists including Seth Frotman, the executive director of the Student Borrower Protection Center and former student loan ombudsman at the Consumer Financial Protection Bureau (CFPB); Persis Yu, a staff attorney at the National Consumer Law Center; Ashley Harrington, senior policy counsel at the Center for Responsible Lending; Jason Delisle of the American Enterprise Institute; and Hasan Minhaj, the writer and host of the Netflix television series, “The Patriot Act,” which recently aired an episode on student debt. Prior to the hearing, Democratic committee staff outlined nine pieces of legislation they are considering related to consumer protections for student borrowers.

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