Twenty attorneys general are calling on the U.S. Department of Education to honor its “historic law enforcement partnerships” by reinstating the long-standing practice of disclosing student loan information to law enforcement agencies – a practice it stopped last month without explanation
In a letter sent to Secretary of Education Betsy DeVos Friday, the 20 attorneys general said that the department in June “quietly” revised its policy on disclosing student loan information to law enforcement agencies, reversing a practice that has existed for nearly two decades.
“Once again, I’m disappointed by Secretary DeVos and the Department of Education,” said New Jersey Attorney General Gurbir S. Grewal. “We want to work with them. We want a meaningful partnership.”
Together, the agencies can crack down on those who exploit students for profit, Grewal said.
“But the federal government’s latest action shields student-loan profiteers from real accountability,” he said. “I remain hopeful that Secretary DeVos reverses her decision and restores our access to this information. We need to work together in order to build meaningful civil and criminal investigations against bad actors.”
Labeling the move a “mistake,” the letter said that limited access to student loan information by law enforcement may hinder the ability of state attorneys general and other agencies to protect students from predatory lending practices and fraud.
“No good reason exists for this abrupt policy change, which can only leave student loan borrowers worse off,” the letter said.
Since 2000, the federal government has permitted routine disclosure of student loan information to state attorneys general and other authorities responsible for investigating and prosecuting crimes and civil fraud.
“The department’s policy change seems to send a signal: law enforcement agencies working to combat crime, fraud, and other unlawful conduct can no longer count on the department as a reliable partner,” the letter from attorneys general said.
“We hope the department does not actually intend to impede law enforcement agencies’ access to student loan information relevant to matters within their jurisdiction,” the letter said. “But we are concerned that may be the result of the department’s policy change.”
Friday’s letter reminds DeVos of the important role that state attorneys general have played in protecting student loan borrowers from fraud and other unlawful conduct. Collaboration with the department historically has facilitated these efforts by state attorneys general to protect student loan borrowers.
For example, New Jersey and 46 other Attorneys General collaborated previously with the department to secure debt relief for students who’d enrolled in programs run by Corinthian Colleges Inc., which was found to have engaged in widespread fraud by misrepresenting job placement rates to enrolled and prospective students and to have engaged in other deceptive, misleading, and predatory tactics. In the case of Corinthian, the letter said, attorneys general from across the United States pooled their resources through the National Association of Attorneys General and “used information provided by the department to notify students of their eligibility for loan forgiveness.”
“Unfortunately,” the letter said, “the department has stopped sharing the information that state attorneys general have used in these efforts without providing any rationale for its decision. And now, with the formal elimination of its policy on routine disclosures of information for use by law enforcement agencies, the department risks further hampering the ability of state attorneys general and other law enforcement officials to protect students from predatory practices and to secure relief for students victimized by fraud and other unlawful activities.”
State attorneys general signing the letter from California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, and Washington.
In May, Grewal wrote to DeVos, asking that the department share records from its investigations of fraudulent activities by educational institutions. DeVos hasn’t responded to that letter.
