Richard Cordray, the former director of the Consumer Finance Protection Bureau, has been tapped by the Biden administration to oversee federal student loans. (Photo: Kirk Irwin/Getty Images)
In 'Major Win for Progressives,' Former CFPB Chief Richard Cordray Tapped to Oversee Federal Student Loans
"This shows that the administration ready to take bold action and be a true partner to address the student debt crisis," said Randi Weingarten of the American Federation of Teachers.
Advocacy groups and progressives in Congress on Tuesday applauded the Biden administration's appointment of Richard Cordray to oversee federal student loans and financial aid, expressing hope that the former head of the Consumer Financial Protection Bureau will encourage the White House to offer much-needed relief to the country's 45 million student borrowers.
Education Secretary Miguel Cardona announced Monday that Cordray will serve as chief operating officer of Federal Student Aid, overseeing student loan servicing companies and the regulation of universities that receive federal student aid.
Sen. Elizabeth Warren (D-Mass.), an ally of Cordray who formed the Consumer Financial Protection Bureau (CFPB), was among those who applauded the appointment.
"I'm very glad he'll be protecting student borrowers and bringing much-needed accountability to the federal student loan program," Warren said of Cordray.
At CFPB, Cordray demonstrated a commitment to public service by working to rein in the payday lending industry, cutting lenders' revenue by two-thirds, according to the agency. During his tenure, the bureau returned nearly $12 billion to 29 million American consumers.
Cordray also oversaw the bureau when it brought several legal actions against for-profit education institutions and filed a major lawsuit against Navient, one of the largest federal student loan servicers.
His appointment comes amid calls from Warren, Senate Majority Leader Chuck Schumer (D-N.Y.), and other lawmakers who are demanding that President Joe Biden cancel up to $50,000 per borrower in student debt--without relying on the approval of Congress--under Section 432(a) of the Higher Education Act of 1965.
Cardona said Monday that the Education and Justice Departments are examining the possibility of canceling student debt, and Cordray declined to say whether student loan cancelation will take place with him at the helm of the Office of Federal Student Aid, but advocates expressed hope that his appointment is a "major win for progressives" on the issue.
"Cordray understands the challenges that student borrowers face, and unlike [former Education Secretary Betsy] DeVos, we are confident he will fight on behalf of borrowers rather than making their lives even more difficult," said Maria Langholz, spokesperson for the Demand Progress Education Fund. "In this role he must not only undo the disastrous legacy of DeVos but play a key role in making massive student debt forgiveness a reality."
Cordray now holds "the single most important job in the executive branch for canceling student debt," said Jeff Hauser, executive director of the Revolving Door Project. "We expect Cordray to take these needed reforms seriously given his excellent history at the CFPB."
"That said, we won't hesitate to be critical if needed," he added.
Other issues Cordray is likely to work on at the Education Department include reforming targeted loan forgiveness programs aimed at public service workers, borrowers with disabilities, and people who have been defrauded by colleges; and managing the department's decision to restart monthly federal student loan and interest payments following a pause that has been in place since March 2020, in light of the pandemic. The pause is currently scheduled to last until September 30.
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
Advocacy groups and progressives in Congress on Tuesday applauded the Biden administration's appointment of Richard Cordray to oversee federal student loans and financial aid, expressing hope that the former head of the Consumer Financial Protection Bureau will encourage the White House to offer much-needed relief to the country's 45 million student borrowers.
Education Secretary Miguel Cardona announced Monday that Cordray will serve as chief operating officer of Federal Student Aid, overseeing student loan servicing companies and the regulation of universities that receive federal student aid.
Sen. Elizabeth Warren (D-Mass.), an ally of Cordray who formed the Consumer Financial Protection Bureau (CFPB), was among those who applauded the appointment.
"I'm very glad he'll be protecting student borrowers and bringing much-needed accountability to the federal student loan program," Warren said of Cordray.
At CFPB, Cordray demonstrated a commitment to public service by working to rein in the payday lending industry, cutting lenders' revenue by two-thirds, according to the agency. During his tenure, the bureau returned nearly $12 billion to 29 million American consumers.
Cordray also oversaw the bureau when it brought several legal actions against for-profit education institutions and filed a major lawsuit against Navient, one of the largest federal student loan servicers.
His appointment comes amid calls from Warren, Senate Majority Leader Chuck Schumer (D-N.Y.), and other lawmakers who are demanding that President Joe Biden cancel up to $50,000 per borrower in student debt--without relying on the approval of Congress--under Section 432(a) of the Higher Education Act of 1965.
Cardona said Monday that the Education and Justice Departments are examining the possibility of canceling student debt, and Cordray declined to say whether student loan cancelation will take place with him at the helm of the Office of Federal Student Aid, but advocates expressed hope that his appointment is a "major win for progressives" on the issue.
"Cordray understands the challenges that student borrowers face, and unlike [former Education Secretary Betsy] DeVos, we are confident he will fight on behalf of borrowers rather than making their lives even more difficult," said Maria Langholz, spokesperson for the Demand Progress Education Fund. "In this role he must not only undo the disastrous legacy of DeVos but play a key role in making massive student debt forgiveness a reality."
Cordray now holds "the single most important job in the executive branch for canceling student debt," said Jeff Hauser, executive director of the Revolving Door Project. "We expect Cordray to take these needed reforms seriously given his excellent history at the CFPB."
"That said, we won't hesitate to be critical if needed," he added.
Other issues Cordray is likely to work on at the Education Department include reforming targeted loan forgiveness programs aimed at public service workers, borrowers with disabilities, and people who have been defrauded by colleges; and managing the department's decision to restart monthly federal student loan and interest payments following a pause that has been in place since March 2020, in light of the pandemic. The pause is currently scheduled to last until September 30.
Advocacy groups and progressives in Congress on Tuesday applauded the Biden administration's appointment of Richard Cordray to oversee federal student loans and financial aid, expressing hope that the former head of the Consumer Financial Protection Bureau will encourage the White House to offer much-needed relief to the country's 45 million student borrowers.
Education Secretary Miguel Cardona announced Monday that Cordray will serve as chief operating officer of Federal Student Aid, overseeing student loan servicing companies and the regulation of universities that receive federal student aid.
Sen. Elizabeth Warren (D-Mass.), an ally of Cordray who formed the Consumer Financial Protection Bureau (CFPB), was among those who applauded the appointment.
"I'm very glad he'll be protecting student borrowers and bringing much-needed accountability to the federal student loan program," Warren said of Cordray.
At CFPB, Cordray demonstrated a commitment to public service by working to rein in the payday lending industry, cutting lenders' revenue by two-thirds, according to the agency. During his tenure, the bureau returned nearly $12 billion to 29 million American consumers.
Cordray also oversaw the bureau when it brought several legal actions against for-profit education institutions and filed a major lawsuit against Navient, one of the largest federal student loan servicers.
His appointment comes amid calls from Warren, Senate Majority Leader Chuck Schumer (D-N.Y.), and other lawmakers who are demanding that President Joe Biden cancel up to $50,000 per borrower in student debt--without relying on the approval of Congress--under Section 432(a) of the Higher Education Act of 1965.
Cardona said Monday that the Education and Justice Departments are examining the possibility of canceling student debt, and Cordray declined to say whether student loan cancelation will take place with him at the helm of the Office of Federal Student Aid, but advocates expressed hope that his appointment is a "major win for progressives" on the issue.
"Cordray understands the challenges that student borrowers face, and unlike [former Education Secretary Betsy] DeVos, we are confident he will fight on behalf of borrowers rather than making their lives even more difficult," said Maria Langholz, spokesperson for the Demand Progress Education Fund. "In this role he must not only undo the disastrous legacy of DeVos but play a key role in making massive student debt forgiveness a reality."
Cordray now holds "the single most important job in the executive branch for canceling student debt," said Jeff Hauser, executive director of the Revolving Door Project. "We expect Cordray to take these needed reforms seriously given his excellent history at the CFPB."
"That said, we won't hesitate to be critical if needed," he added.
Other issues Cordray is likely to work on at the Education Department include reforming targeted loan forgiveness programs aimed at public service workers, borrowers with disabilities, and people who have been defrauded by colleges; and managing the department's decision to restart monthly federal student loan and interest payments following a pause that has been in place since March 2020, in light of the pandemic. The pause is currently scheduled to last until September 30.