How State Tax Dollars Funded a Secretive Lobbying Group to Gut Protections for Student Loan Borrowers

An estimated 44 million Americans struggle under the weight of nearly $1.5 trillion in student debt. More than 11 million student loan borrowers (one-fourth of all borrowers) are past due or in default on a student loan. In 2017, three times more Americans defaulted on a student loan than lost their homes to foreclosure—another sign of a growing crisis affecting households and communities across the country. 

In the middle of this widespread financial distress, the private-sector student loan companies responsible for collecting these debts (known as “student loan servicers”) have been accused of ripping off service members and teachers, driving older borrowers into poverty, and denying millions their rights under federal and state law. That’s why state attorneys general and state legislators across the country have stepped up to create new protections for student loan borrowers and rein in a runaway student loan industry. 

But this progress is under threat by a behind-the-scenes campaign to persuade U.S. Education Secretary Betsy DeVos to shield student loan companies and deny states the right to hold these companies accountable for their actions.