{{Infobox organization | name = Student Borrower Protection Center | logo = | abbreviation = | type = Nonprofit organization | formation = {{start date and age |2018 }} | founders = {{UBL |Seth Frotman |Mike Pierce |Bonnie Latreille }} | purpose = Advocacy group | location = Sacramento, California, United States | funding = <!-- source of funding e.g. for "think tanks" --> | leader_title = Executive director | leader_name = Mike Pierce | num_staff = | num_staff_year = | website = {{URL |https://protectborrowers.org}} }}
The '''Student Borrower Protection Center''' is an American nonprofit organization aimed at protecting borrowers of student loans and improving the student loan system.
== History == The Student Borrower Protection Center was founded in late 2018 by Seth Frotman, former student loan ombudsman at the Consumer Financial Protection Bureau; Mike Pierce, former lead higher education and consumer protection adviser at the bureau; and Bonnie Latreille, a former advisor to Frotman at the bureau.<ref>{{Cite news |last=Cowley |first=Stacy |date=2018-08-27 |title=Student Loan Watchdog Quits, Saying Trump Administration Is Harming Students |language=en-US |work=The New York Times |url=https://www.nytimes.com/2018/08/27/business/cfpb-frotman-student-loans.html |access-date=2022-08-07 |issn=0362-4331}}</ref><ref name=":0">{{Cite news |last=Cowley |first=Stacy |date=2018-11-28 |title=A Student Loan Help Center, Created by Critics of Trump's Enforcement Efforts |language=en-US |work=The New York Times |url=https://www.nytimes.com/2018/11/28/business/student-loans-seth-frotman.html |access-date=2022-08-07 |issn=0362-4331}}</ref><ref>{{Cite web |last=Dayen |first=David |date=2022-03-28 |title=Washington's Best Hope |url=https://prospect.org/api/content/4ca2b05a-ac5c-11ec-909a-12274efc5439/ |access-date=2022-08-07 |website=The American Prospect |language=en-us}}</ref><ref>{{Cite web |title=Former CFPB Official Launches "Protection Center" for Student Borrowers |url=https://www.nasfaa.org/news-item/16894/_Former_CFPB_Official_Launches_Protection_Center_for_Student_Borrowers |access-date=2022-08-07 |website=www.nasfaa.org}}</ref> They formed the Student Borrower Protection Center to address what they perceived as the Trump administration’s favoritism toward the student loan industry with an aim of assisting student loan borrowers and reducing the growing amount of student debt held by Americans,<ref name=":0" /> stating that “the federal government hasn’t just walked away from the fight on behalf of borrowers, it is actually arming the other side.”<ref>{{Cite web |date=2018-11-28 |title=Former govt. student loan official opens new organization |url=https://apnews.com/article/cbdaa81ec48848289aa8236545f5836a |access-date=2022-08-07 |website=AP NEWS |language=en}}</ref><ref name=":1">{{Cite web |last=Friedman |first=Zack |title=Your Former Student Loan Watchdog Is Back |url=https://www.forbes.com/sites/zackfriedman/2018/11/29/student-loans-resources/ |access-date=2022-08-07 |website=Forbes |language=en}}</ref> The group also announced a partnership with the University of California, Irvine School of Law aimed at driving academic research on the effects of the student debt crisis.<ref name=":1" />
In July 2021, the Biden administration announced that Latreille would serve as the U.S. Department of Education’s student loan ombudsman, its top watchdog for the federal student loan program.<ref>{{Cite web |title=Education Department's Student Aid Office Adds Experienced Leaders |url=https://www.ed.gov/news/press-releases/education-departments-student-aid-office-adds-experienced-leaders |access-date=2022-08-07 |website=www.ed.gov}}</ref> In October 2021, the Consumer Financial Protection Bureau announced that Frotman would return to the agency to serve as acting General Counsel.<ref>{{Cite web |title=CFPB announces key leadership changes |url=https://www.jdsupra.com/legalnews/cfpb-announces-key-leadership-changes-3365825/ |access-date=2022-08-07 |website=JD Supra |language=en}}</ref> Mike Pierce became executive director following Frotman's return.<ref>{{Cite web |date=2021-10-20 |title=Student Borrower Protection Center Announces New Leadership |url=https://protectborrowers.org/student-borrower-protection-center-announces-new-leadership/ |access-date=2022-08-07 |website=Student Borrower Protection Center |language=en-US}}</ref><ref>{{Cite web |title=Mike Pierce - Practising Law Institute |url=https://www.pli.edu/faculty/mike-pierce-i1954113 |access-date=2022-08-07 |website=www.pli.edu}}</ref>
== Advocacy efforts ==
=== Income driven repayment === The Student Borrower Protection Center worked with the Student Debt Crisis Center, the Center for Responsible Lending, and the National Consumer Law Center to advocate for improvements to the income driven repayment plan system(IDR).<ref>{{Cite web |last=Sheffey |first=Ayelet |title=Student-loan forgiveness for millions of low-income borrowers could be jeopardized by 'harmful servicing practices,' 4 advocacy groups say |url=https://www.businessinsider.com/advocates-hold-student-loan-industry-accountable-debt-forgiveness-idr-2022-4 |access-date=2022-08-07 |website=Business Insider |language=en-US}}</ref><ref name=":2">{{Cite web |date=2022-01-18 |title=Proposed IDR Waiver Promises Debt Forgiveness |url=https://www.bestcolleges.com/news/2022/01/18/income-driven-repayment-waiver-student-debt-forgiveness/ |access-date=2022-08-07 |website=www.bestcolleges.com |language=en-US}}</ref> The suggested improvements include retroactively counting time spent in the plan towards forgiveness, for relief to be granted automatically, and for the program to apply to all federal student loans.<ref name=":2" /><ref>{{Cite web |title=Advocacy groups call on California lawmakers to pass the Student Borrower Bill of Rights |url=https://advocacy.consumerreports.org/press_release/advocacy-groups-call-on-california-lawmakers-to-pass-the-student-borrower-bill-of-rights/ |access-date=2022-08-07 |website=CR Advocacy |language=en}}</ref> On April 19, 2022, Secretary of Education Miguel Cardona announced a new initiative modeled on this proposal, promising “[m]ore than 3.6 million borrowers will also receive at least three years of additional credit toward IDR forgiveness.”<ref>{{Cite web |title=Department of Education Announces Actions to Fix Longstanding Failures in the Student Loan Programs |url=https://www.ed.gov/news/press-releases/department-education-announces-actions-fix-longstanding-failures-student-loan-programs#:~:text=More%20than%203.6%20million%20borrowers,Secretary%20of%20Education%20Miguel%20Cardona. |access-date=2022-08-07 |website=www.ed.gov}}</ref>
=== Public Service Loan Forgiveness Program === In 2018, the group joined the American Federation of Teachers to launch an investigation into the failure of the Public Service Loan Forgiveness program.<ref>{{Cite web |date=2020-08-12 |title=AFT and SBPC Uncover New Evidence of Mismanagement and Abuse in Scandal-Plagued Public Service Loan Forgiveness Program |url=https://www.aft.org/press-release/aft-and-sbpc-uncover-new-evidence-mismanagement-and-abuse-scandal-plagued |access-date=2022-08-07 |website=American Federation of Teachers |language=en}}</ref> Over the course of three years, Student Borrower Protection Center supported litigation by teachers and uncovered evidence of government mismanagement and industry abuses across the student loan system, including evidence that Public Service Loan Forgiveness systematically failed to deliver debt relief to members of the military, as reported by Leslie Stahl on 60 Minutes.<ref>{{Cite web |title=Military members promised student debt relief in exchange for ten years of public service say promise is often broken |url=https://www.cbsnews.com/news/student-loan-debt-forgiveness-public-service-60-minutes-2021-10-03/ |access-date=2022-08-07 |website=www.cbsnews.com |language=en-US}}</ref> In October 2021, the Biden administration announced an overhaul of the embattled program, promising immediate debt cancellation to tens of thousands of public service workers and additional credit towards loan forgiveness for over half a million borrowers.<ref>{{Cite web |last=Smith |first=Ashley A. |title=UPDATE: Biden administration overhauls Public Service Loan Forgiveness program |url=https://edsource.org/updates/biden-administration-overhauls-public-service-loan-forgiveness-program |access-date=2022-08-07 |website=EdSource |language=en}}</ref><ref>{{Cite web |last=Quintana |first=Chris |title=Student loan forgiveness has arrived for 70,000 borrowers working public service jobs |url=https://www.usatoday.com/story/news/education/2022/01/20/student-loan-forgiveness-public-service-loans/6584434001/ |access-date=2022-08-07 |website=USA Today |language=en-US}}</ref>
In 2022, the group released data regarding the Public Service Loan Forgiveness program stating that 9 million public servants are eligible for the loan forgiveness program, however, only 15% have filed paperwork related to the relief program and only 2% have received said relief.<ref name=":3">{{Cite web |last=Friedman |first=Zack |title=9 Million Borrowers Now Qualify For Student Loan Forgiveness |url=https://www.forbes.com/sites/zackfriedman/2022/06/09/9-million-borrowers-now-qualify-for-student-loan-forgiveness/ |access-date=2022-08-07 |website=Forbes |language=en}}</ref><ref>{{Cite web |title=Over 9 million student-loan borrowers are eligible to get their debt wiped out — but fewer than 2% of them have actually gotten that relief, new report finds |url=https://news.yahoo.com/over-9-million-student-loan-151905001.html |access-date=2022-08-07 |website=news.yahoo.com |language=en-US}}</ref> The group has also partnered with a coalition of labor unions representing public sector employees to raise awareness and enrollment in the Public Service Loan Forgiveness program.<ref name=":3" />
=== Student loan debt relief === At the beginning of the COVID-19 pandemic, the center was a proponent for blanket relief for student loan borrowers, arguing that “lenders should immediately and automatically implement payment relief measures and protections against late fees, damaged credit, and other negative consequences for all delinquent borrowers across their entire loan portfolios.”<ref>{{Cite web |last=Dayen |first=David |date=2020-04-22 |title=Unsanitized: Why Relief for Mortgage and Student Loan Borrowers Must Be Automatic |url=https://prospect.org/api/content/8535ad56-84a8-11ea-9015-1244d5f7c7c6/ |access-date=2022-08-07 |website=The American Prospect |language=en-us}}</ref> From 2020 to 2022, the center issued multiple letters to President Biden, co-signed by hundreds of organizations, calling on the President to extend the pause on student loan payments that is currently set to expire August 31, 2022.<ref name=":4">{{Cite web |date=2021-04-13 |title=Sign-on Letter: Over 415 Orgs Call on President Biden to Cancel Federal Student Debt Immediately via Executive Action |url=https://ourfinancialsecurity.org/2021/04/sign-on-letter-over-410-orgs-call-on-president-biden-to-cancel-federal-student-debt-immediately-via-executive-action/ |access-date=2022-08-07 |website=Americans for Financial Reform |language=en-US}}</ref><ref>{{Cite web |date=2020-11-18 |title=Sign-on Letter: Over 235 Orgs Call on President-Elect Biden to Cancel Federal Student Debt on Day One using Executive Action |url=https://ourfinancialsecurity.org/2020/11/sign-on-letter-over-230-orgs-call-on-president-elect-biden-to-cancel-federal-student-debt-on-day-one-using-executive-action/ |access-date=2022-08-07 |website=Americans for Financial Reform |language=en-US}}</ref><ref name=":5">{{Cite web |last=Sheffey |first=Ayelet |title=Student-loan borrowers shouldn't have to pay off debt Biden 'has promised to cancel,' 180 organizations say — and they're calling for another payment-pause extension |url=https://www.businessinsider.com/biden-cancel-student-debt-extend-loan-payment-pause-orgs-sbpc-2022-6 |access-date=2022-08-07 |website=Business Insider |language=en-US}}</ref><ref>{{Cite web |last1=Figueroa |first1=Ariana |date=2021-12-21 |title=Biden administration resists Democrats' pleas on student debt relief as deadline nears |url=https://ohiocapitaljournal.com/2021/12/21/biden-administration-resists-democrats-pleas-on-student-debt-relief-as-deadline-nears/ |access-date=2022-08-07 |website=Ohio Capital Journal |language=en-US}}</ref> The organizations advocate for the President to extend the pause until he follows through on his campaign promise to cancel student debt for all borrowers.<ref>{{Cite web |title=Unions lobby Biden for bolder approach to student debt relief |url=https://www.politico.com/news/2022/06/06/unions-lobby-biden-for-bolder-approach-to-student-debt-relief-00037440 |access-date=2022-08-07 |website=POLITICO |language=en}}</ref><ref name=":5" /><ref name=":4" />
=== Educational redlining === In 2020, the center launched an investigation into a practice the group calls “educational redlining,” identifying cases where banks and financial firms charge people who attend Historically Black Colleges and Universities more money for student loans and other financial products compared to people who attend majority-white colleges.<ref>{{Cite news |title=Graduates Of Historically Black Colleges May Be Paying More For Loans: Watchdog Group |language=en |work=NPR.org |url=https://www.npr.org/2020/02/05/802904167/watchdog-group-minority-college-graduates-may-pay-higher-interest-rates |access-date=2022-08-07}}</ref> This investigation spurred the Senate Banking Committee to launch a probe into the practice.<ref>{{Cite web |title=Brown, Senate Democrats Press Upstart, Lenders for Answers Following Reports of Higher Interest Rates for Students of Minority-Serving Institutions |url=https://www.banking.senate.gov/newsroom/minority/brown-senate-democrats-press-upstart-lenders-for-answers-following-reports-of-higher-interest-rates-for-students-of-minority-serving-institutions |access-date=2022-08-07 |website=www.banking.senate.gov |language=en}}</ref> In 2021, the group joined NAACP Legal Defense Fund to enter into an agreement with Upstart Holdings, a company identified in the group's 2020 investigation.<ref name=":6">{{Cite web |last=Berman |first=Jillian |title=Do AI-powered lending algorithms silently discriminate? This initiative aims to find out |url=https://www.marketwatch.com/story/do-ai-powered-lending-algorithms-silently-discriminate-this-initiative-aims-to-find-out-11637246524 |access-date=2022-08-07 |website=MarketWatch |language=EN-US}}</ref> The settlement subjects Upstart's lending business to independent monitoring by civil rights law firm Relman Colfax.<ref name=":6" />
=== Income share agreements === In 2020, the group filed a complaint with the Federal Trade Commission accusing income-share agreement servicer Vemo Education of engaging in deceptive marketing practices.<ref>{{Cite web |last=Swaminathan |first=Aarthi |title=Purdue graduate slams alternative student loan, suspended by the university: 'It was extremely difficult, before I got my monthly payments down, to be able to pay rent, buy food' |url=https://www.marketwatch.com/story/it-was-extremely-difficult-before-i-got-my-monthly-payments-down-to-be-able-to-pay-rent-buy-food-purdue-graduate-slams-alternative-student-loan-suspended-by-the-university-11655822779 |access-date=2022-08-07 |website=MarketWatch |language=EN-US}}</ref> Vemo was servicer of the now-suspended Purdue University Back a Boiler income share agreement program. The Student Borrower Protection Center was critical of the Back a Boiler program, sending a letter to the Department of Education and the Consumer Financial Protection Bureau accusing the university of violating the Higher Education Act.<ref>{{Cite web |title=Purdue pauses new income-share agreement enrollments |url=https://www.insidehighered.com/news/2022/06/23/purdue-pauses-new-income-share-agreement-enrollments |access-date=2022-08-07 |website=www.insidehighered.com |language=en}}</ref><ref>{{Cite web |date=2022-06-24 |title=Purdue University Suspends Income-Share Agreements, Its Loan Alternative - EdSurge News |url=https://www.edsurge.com/news/2022-06-24-purdue-university-suspends-income-share-agreements-its-loan-alternative |access-date=2022-08-07 |website=EdSurge |language=en}}</ref>
== References == {{Reflist}}
Category:Political organizations based in the United States Category:Think tanks based in the United States