Allied Progress Launches Investigation into Ed Department’s Decision to Cut Ties with Consumer Bureau

Trump Administration Brings Assault on Consumer Protections to Student Loan Borrowers


WASHINGTON, D.C. – Today, Allied Progress is launching an investigation to uncover whether special interests influenced the U.S. Department of Education’s recent decision to cut ties with the Consumer Financial Protection Bureau (CFPB). This decision would block CFPB efforts to protect student loan borrowers from predatory lending practices. Allied Progress filed a Freedom of Information Act (FOIA) request with the Department of Education regarding the department’s decision to end the partnership with the CFPB as well as a request regarding the potential influence of special interests in this decision.

The investigation comes on the heels of the Education Department’s decision to hire the former dean of DeVry University to lead the department’s Student Aid Enforcement Unit. DeVry University last year settled a federal false advertising lawsuit for $100 million.

“It is disappointing to see Secretary DeVos doing the bidding of corrupt for-profit colleges and other special interests. She is putting the political agenda of the Trump administration ahead of the best interests of consumers. The Education Department’s refusal to fight the predatory practices and abuses from for-profit colleges, student loan processors, and other financial institutions shows a blatant disregard for student loan borrowers,” said Karl Frisch, executive director of Allied Progress.

He continued, “Trump University may be gone, but it’s clear DeVos has no problem exposing millions of Americans to the same types of predatory ‘educational institutions’ that led her boss to shell out $25 million to settle fraud claims before taking office.”

The Allied Progress investigation into the decision to end the relationship between the Department of Education and the CFPB seeks to answer the following questions:

  • What was the justification for Secretary DeVos to cut ties with the CFPB?
  • What contact has Secretary DeVos, or other officials within the Education Department, had with the for-profit education industry regarding this decision?

To speak to Karl Frisch about the Allied Progress investigation, please contact Tucker Middleton at 202-644-8526 or tucker@alliedprogress.org.

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Allied Progress uses hard-hitting research and creative campaigns to stand up to Wall Street and powerful special interests and hold their allies in Congress and the White House accountable.

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