Following the agencies’ reinstatement of a legally required Memorandum of Understanding (MOU) for interagency cooperation in resolving student borrower complaints, Democracy Forward is pressing forward with its lawsuit, on behalf of Student Debt Crisis, to protect student borrowers from neglect by the Department of Education and Consumer Financial Protection Bureau because the CFPB continues to shirk its legal obligation to supervise large student loan servicers.

The administration’s unlawful action leaves over 40 million student borrowers at risk. Loans owned by the federal government account for over 80% of the student loan debt held nationwide with student loan servicers responsible for, among other things, collecting loan payments and advising borrowers on resources and benefits to better manage their student loan obligations. So collectively, the agencies’ actions effectively leave the vast majority—81%—of student loan debt without proper federal oversight.