The Chronicle of Higher Education's Analysis of the future for the CFPB
An Uncertain Future for Higher Education’s Federal ‘Cop on the Beat’
By Goldie Blumenstyk MARCH 16, 2017
Jim Watson/AFP/Getty Images
The Consumer Financial Protection Bureau is the federal agency that many Republicans, financial institutions, and for-profit colleges love to hate.
Just under seven years old, the bureau has already left its mark on broad swaths of higher education. It has uncovered abusive practices of student-loan-servicing companies; sued banks and for-profit colleges, accusing them of misrepresenting their student loans; created a complaint system for student borrowers that many consider a model for protecting consumer interests; and highlighted the often too-cozy business ties that colleges have in their deals with banks for student debit cards.
Through a flurry of reports, blog posts, enforcement actions, and lawsuits, the bureau has touched on programs and services that affect nearly every one of the 50 million Americans now holding a student loan or co-signing one, along with millions of others enrolled in college. While it’s impossible to deny the agency’s broad reach, it’s also not hard to find critics assailing it for overreach, sensationalism, and what one detractor calls an overreliance on "name-shaming press releases." Read More