February 3, 2020

CFPB: U.S. Department of Education and CFPB Sign Memorandum of Understanding to Better Serve Student Loan Borrowers

The Consumer Financial Protection Bureau (Bureau) and the U.S. Department of Education (ED) announced a new coordination agreement in order to better serve student loan borrowers. Under the newly signed Memorandum of Understanding (MOU) the agencies will share complaint information from borrowers and meet quarterly to discuss observations about the nature of complaints received, characteristics of borrowers, and available information about resolution of complaints. The MOU also provides for the sharing of complaint data analysis, recommendations, and analytical tools.

“This agreement concerning student loan complaints will protect students as both the Bureau and the Education Department work to resolve their complaints,” said Consumer Financial Protection Bureau Director Kathleen L. Kraninger. “This MOU provides a robust framework that allows for the staff at both agencies to work together to provide better outcomes for consumers.”

“All student loan borrowers, whether they have a Federally-held or private student loan, deserve world-class service and quick resolution when facing issues,” said U.S. Secretary of Education Betsy DeVos. “Through this new agreement with the CFPB, we will coordinate our regulatory efforts, avoid needless duplication, and protect student loan borrowers.”  

The MOU also more clearly defines roles and responsibilities for each agency. The MOU also allows for subject matter experts from both agencies to work together more efficiently to resolve complaints and fulfill their respective duties under the law.

To view the MOU please click here: https://files.consumerfinance.gov/f/documents/cfpb_ed-memorandum-of-understanding_student-loan-borrowers_2020-02.pdf 

This post was originally published here.