U.S. Sen. Tammy Baldwin
Press Release

Senators Baldwin and Nelson Call on Department of Education to Act on Student Loan Debt Relief Scams


By - Oct 18th, 2017 08:16 am

WASHINGTON, D.C. – Following the Federal Trade Commission’s (FTC) announcement of the first federal-state law enforcement initiative to crack down on student loan debt relief scams, U.S. Senators Tammy Baldwin (D-WI) and Bill Nelson (D-FL) continue to call for the Department of Education to also take action in addressing this growing problem.

In a letter last month, Baldwin and Nelson led a group of 12 senators in calling on Department of Education Secretary Betsy DeVos to take swift action in addressing the growing problem of student loan debt relief scams, citing the Department’s responsibility to ensure effective and streamlined student loan services.

“We write to request that your agency take swift action to address the growing problem of student loan debt relief scams,” wrote the senators. “These schemes are luring student loan borrowers into paying thousands of dollars in exorbitant and unnecessary fees for services that are available for free with false promises to reduce or forgive their debt. Most victims of these deceptive practices are quickly defrauded by the companies that promised to help them, and unknowingly become delinquent on their payments and default on their loans, miss communications with their servicers, and fall even deeper into debt. Given the terrible impact on student loan borrowers and their families, and the clear federal role in improving federal student loan servicing we strongly believe the U.S. Department of Education (“Department”) and its contracted loan servicers should take new and more aggressive action to reduce the prevalence of these debt relief scams.”

Senators Patty Murray (D-WA), Dianne Feinstein (D-CA), Kirsten Gillibrand (D-NY), Chris Murphy (D-CT), Catherine Cortez Masto (D-NV), Ben Cardin (D-MD), Kamala Harris (D-CA), Dick Durbin (D-IL), Amy Klobuchar (D-MN), Al Franken (D-MN), Jack Reed (D-RI) and Elizabeth Warren (D-MA) also signed the letter.

A copy of the letter is available here.

An online version of this release is available here.

Recent Press Releases by U.S. Sen. Tammy Baldwin

Senators Baldwin and Ernst Introduce Bipartisan Legislation to Improve Transportation Access for Workers and Families

Bipartisan reform expands resources to help solve mobility challenges and boost economic opportunity

Baldwin, Levin, Murray, Scott Reintroduce Legislation to Provide Two Free Years of Community College

The America's College Promise Act creates federal-state partnerships to provide two years of tuition-free access to community or technical college programs that lead to a degree or industry-recognized credential.

Baldwin, Risch, Welch, Simpson Stand Up for America’s Dairy Farmers

Bipartisan, bicameral DAIRY PRIDE Act fights back against non-dairy products that are mislabeled as milk, yogurt and cheese

Leave a Reply

You must be an Urban Milwaukee member to leave a comment. Membership, which includes a host of perks, including an ad-free website, tickets to marquee events like Summerfest, the Wisconsin State Fair and the Florentine Opera, a better photo browser and access to members-only, behind-the-scenes tours, starts at $9/month. Learn more.

Join now and cancel anytime.

If you are an existing member, sign-in to leave a comment.

Have questions? Need to report an error? Contact Us