Bill would direct watchdogs to improve oversight, coordination to protect borrowers

February 20, 2024 - Following a report Rep. Katie Porter (D-CA) recently released on conflicting priorities in the student loan servicing industry, Porter and Rep. Suzanne Bonamici (D-OR) reintroduced their bill to boost transparency, oversight, and accountability of student loan servicers. The CFPB Student Loan Integrity and Transparency Act would direct both the Consumer Financial Protection Bureau (CFPB) and Department of Education to oversee student loan servicers, helping restore confidence in industry watchdogs. Reps. Jahana Hayes (D-CT) and John Sarbanes (D-MD) also cosponsor the bill. 

Congresswoman Katie Porter (D-CA)

“Americans with student loans deserve to have confidence that the watchdogs who hold loan servicers accountable are working in borrowers’ best interests,” said Rep. Porter. “My office’s recent report discovered conflicting priorities and chronic issues in the student loan industry that threaten long-term financial harm for many borrowers. My bill would empower the CFPB—an independent agency—to provide oversight and accountability on behalf of millions of Americans.”

“The Biden Administration is working to improve the student loan system, but unscrupulous lenders are still targeting too many students,” said Rep. Bonamici. “The CFPB Student Loan Integrity and Transparency Act will empower the Consumer Financial Protection Bureau to advocate for students and increase oversight of the student loan system. I am grateful to join Rep. Porter in supporting this important legislation.”

Congresswoman Porter’s bill follows up on a report she recently released on the need for more oversight of loan servicers. Read the report, Checks and Balances in the Federal Student Loan System, HERE.

As a law professor and consumer protection advocate, Rep. Porter has proudly spearheaded efforts to deliver student loan assistance to Americans. When payments for student loans resumed last year, Rep. Porter released a Return to Repayment guide to help borrowers understand how this could affect their loans. She blasted MOHELA, a major student loan servicer, for its shoddy customer service practices. Congresswoman Porter has introduced legislation to prevent universities from manipulating student loan default data and hold institutions with high rates of default accountable. 
Source: Congresswoman Katie Porter