News Release, US Department of Education
WASHINGTON — The U.S. Department of Education and the Consumer Financial Protection Bureau (CFPB) 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 the resolution of complaints. The MOU also provides for the sharing of complaint data analysis, recommendations, and analytical tools.
“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 the borrowers we serve.”
“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 the staff at both agencies to work together to provide better outcomes for consumers.”
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 read the MOU, click here.