A letter by a top adviser to Education Secretary Betsy DeVos reveals how the department has prioritized student loan servicers over student borrowers, consumer advocates say.
The Education Department is intervening on behalf of student loan servicers, some accused of illegally exploiting borrowers, by declining to turn over information to law enforcement agencies in multiple states investigating the businesses, some consumer advocates say.
"It's a brazen act of lawlessness," said Christopher Peterson, a law professor at the University of Utah and former enforcement lawyer at the Consumer Financial Protection Bureau, the government's consumer watchdog.Diane Auer Jones, a top adviser to Education Secretary Betsy DeVos, Sen. Patty Murray, D-Wash., one of the lawmakers who received the letter and a vocal critic of the department under DeVos, said the explanation from Jones gets at the heart of how she believes the department has put the interests of student loan servicers before student borrowers.
"However, recent steps by the Department suggest your agency's previous commitment to information-sharing with law enforcement may no longer be your policy or practice," the lawmakers said.
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