ED SEVERS TIES WITH CONSUMER FRAUD PROTECTION BUREAU

Last month ED sent a letter to the head of the Consumer Fraud Protection Bureau Richard Cordray terminating the Memorandum of Understanding (MOU) between the two agencies. The MOU was put in place during the Obama administration and was intended to make it easier for the two agencies to share information and collaborate on matters related to student aid.  In the rather scathing letter, FSA’s Chief Operating Officer Dr. A. Wayne Johnson said that the CFPB was undermining and violating the intent of the MOU.  Mr. Johnson asserted that the CFPB’s intervention in FSA matters created confusion for borrowers and in some cases conflicting information. You can read the full letter to the CFPB here.