Arising from the ashes of the 2007–2009 financial crisis, the Consumer Financial Protection Bureau (CFPB) was designed to protect consumers from being taken advantage of by financial institutions. However, the agency’s priorities appear to be shifting away from regulating entities that aren’t large banks, such as 澳洲幸运5官方开奖结果体彩网:student loan servicers. As such, student borrowers may have 🎀to start relying more on state agencies and꧑ nonprofits for protection.

Recent Changes in CFPB Priorities

Part of why an agency like the Consumer Financial Protection Bureau (CFPB) is necessary is that there's often 澳洲幸运5官方开奖结果体彩网:information asymmetry between financial institutions and consumers. You might not realize what you're elig﷽ible for, for example, and end up paying more than you needed to.

For example, the CFPB has moved to protect borrowers from entities like Navient, previously the nation's largest student loan servicer. The CFPB ended up banning the company from federal student 澳洲幸运5官方开奖结果体彩网:loan servicing for pushing borrowers into more expensive repayment options, among other alleged illegal actions. 

However, according to an internal memo, the agency will be deprioritizing the regulation of certain industries, including student loans and 澳洲幸运5官方开奖结果体彩网:digital payments. While the memo notes that the CFPB is shifting away from supervision and enforcement of areas that can be handled by states, reduced federal support could make state regulatory enforcement more difficult.

Alternative Avenues for Protection

Although student borrowers may have fewer protections if the CFPB isn’t regulating the market as it once did, there are some alternatives. Depending on your location a♒nd loan type, your options may include:

• For federal loans, submit feedback to the Department of Education's Federal Student Aid (FSA) office, or escalate to FSA's Ombudsman Group.
• Contact your state's student loan ombudsman or state attorney general for help with federal or private loans.
• File a complaint with your college or university's state accrediting or approval agency if the problem pertains to your school.
• Contact a nonprofit organization that can potentially provide legal assistance or point you in the right direction for further support, such as or the .
• Report suspected student loan scams to the 澳洲幸运5官方开奖结果体彩网:Federal Trade Commission (FTC).

The Bottom Line

For years now, the CFPB has worked to protect student borrowers from improper practices. However, now that the agency is deprioritizing its oversight of student loan servicers, much of𓃲 that responsibility will likely fall onto state regulators, nonprofits, and perhaps even private companies such as law firms. As such, consumers may have to explore alternate avenues for support go🐈ing forward.