NPR: Consumer Agency Failed To Protect Student Loan Borrowers, Lawsuit Says

NPR, November 25, 2019: Consumer Agency Failed To Protect Student Loan Borrowers, Lawsuit Says

A nonprofit student loan group is suing the nation’s most powerful consumer watchdog agency. The lawsuit, first obtained by NPR, alleges that the Consumer Financial Protection Bureau has abandoned its obligation to oversee companies that manage student loans, in particular, a troubled loan forgiveness program.

“We are suing the Department of Education and the CFPB because they are not doing their jobs,” says Natalia Abrams, the founder of Student Debt Crisis. Abrams’ group works both on policy issues and directly with borrowers.

But she says a breakdown in government supervision has created such a mess that her organization is getting overrun with calls from people who need help. The lawsuit essentially says it’s not OK that Abrams’ group has been forced to divert resources to handle a problem the government should be dealing with.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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