In ‘Major Win for Progressives,’ Former CFPB Chief Richard Cordray Tapped to Oversee Federal figuratively speaking
” This shows that the management prepared to just just take bold action and be a real partner to deal with the pupil financial obligation crisis,” stated Randi Weingarten regarding the United states Federation of Teachers.
Richard Cordray, the previous manager for the customer Finance Protection Bureau, happens to be tapped because of the Biden management to oversee federal student education loans. (Picture: Kirk Irwin/Getty Graphics)
Advocacy groups and progressives in Congress on Tuesday applauded the Biden management’s visit of Richard Cordray to oversee student that is federal and school funding, expressing hope that the previous mind regarding the Consumer Financial Protection Bureau will enable the White House to provide much-needed relief towards the nation’s 45 million pupil borrowers.
Education Secretary Miguel Cardona announced Monday that Cordray will serve as chief running officer of Federal scholar Aid, overseeing education loan servicing businesses plus the legislation of universities that get federal pupil help.
Sen. Elizabeth Warren (D-Mass.), an ally of Cordray whom formed the buyer Financial Protection Bureau (CFPB), had been those types of whom applauded the visit.
“I’m extremely happy he will be student that is protecting and bringing much-needed accountability to your federal education loan system,” Warren said of Cordray.
.@RichCordray ended up being a@CFPB that is fearless whom forced big banking institutions to come back $12 billion to individuals they cheated. IвЂ™m extremely glad heвЂ™ll be protecting student borrowers and bringing much-needed accountability into the student loan program that is federal.
At CFPB, Cordray demonstrated a consignment to public solution by trying to rein when you look at the payday financing industry, cutting loan providers’ income by two-thirds, in line with the agency. The bureau returned nearly $12 billion to 29 million American consumers during his tenure.
Cordray also oversaw the bureau whenever it brought several appropriate actions against for-profit education organizations and filed a lawsuit that is major Navient, one of many biggest federal education loan servicers.
Their visit comes amid telephone telephone calls from Warren, Senate Majority Leader Chuck Schumer (D-N.Y.), along with other lawmakers that are demanding that President Joe Biden cancel up to $50,000 per debtor in pupil debtвЂ”without relying from the approval of CongressвЂ”under Section 432(a) associated with advanced schooling Act of 1965.
Cardona said Monday that the Education and Justice Departments are examining the likelihood of canceling pupil debt, and Cordray declined to state whether education loan cancelation will need spot with him during the helm of this Office of Federal Student help realbadcreditloans.com, but advocates indicated hope that his visit is really a “major win for progressives” regarding the problem.
This really is a huge, big deal and a significant victory for progressives regarding the problem of pupil financial obligation. https://t.co/9GdBoBUDqQ
Very good news. Richard Cordray ended up being a champ for pupil borrowers as he is at CFPB. This shows that the administration prepared to simply just take action that is bold be a real partner to deal with the pupil financial obligation crisis. https://t.co/sr7vyDIFpU
вЂ” Randi Weingarten (@rweingarten) May 4, 2021
Our statement that is official with @revolvingdoorDC, on Biden’s selection of Cordray to guide Federal scholar help.
tl; dr: @RichCordray is just a pick that is good! pic.twitter.com/KrNmf6vVQw
вЂ” Demand Progress (@demandprogress) May 3, 2021
“Cordray knows the difficulties that student borrowers face, and unlike [former Education Secretary Betsy] DeVos, our company is confident he can fight on behalf of borrowers instead of making their everyday lives even more complicated,” said Maria Langholz, representative for the need Progress Education Fund. “In this part he must not just undo the disastrous legacy of DeVos but play a role that is key making massive pupil financial obligation forgiveness a real possibility.”
Cordray now holds “the solitary many essential task in the executive branch for canceling pupil debt,” stated Jeff Hauser, executive manager regarding the Revolving Door venture. “We anticipate Cordray to simply just take these required reforms really provided their exemplary history during the CFPB.”
“That stated, we will not think twice to be critical if needed,” he added.
Other problems Cordray probably will work with at the Education Department include reforming targeted loan forgiveness programs directed at general public service employees, borrowers with disabilities, and individuals who’ve been defrauded by universities; and handling the division’s choice to restart month-to-month federal education loan and interest re re payments following a pause which has been in position since March 2020, in light for the pandemic. The pause happens to be scheduled to endure until September 30.