If a Democrat wins the White House in 2020, a revamp of the beleaguered student-loan forgiveness for public servants could be on the table. Many of the leading candidates are backing a plan that would expand the loan and repayment types eligible for the Public Service Loan Forgiveness program (PSLF) and allow borrowers to have part of their loan balance forgiven after five years, instead of waiting for 10 years to qualify for a full loan discharge.
A dozen Democratic senators introduced a bill on Thursday to overhaul the popular but challenged Public Service Loan Forgiveness Program. The legislation, the What You Can Do for Your Country Act,would dramatically expand the pool of student loan borrowers who are eligible to have their debt canceled.
The leaders of the biggest U.S. banks have a message for Congress: take a closer look at the ballooning markets for student and corporate loans. Rep. Jim Himes, D-Conn., asked a panel of seven CEOs, brought together Wednesday for a House Financial Services Committee hearing what they thought were the products or markets that could threaten the U.S. financial system.
The first major standoff between Democratic lawmakers and the Trump-appointed director of the Consumer Financial Protection Bureau is threatening to put military servicemembers at risk. CFPB Director Kathy Kraninger and her congressional critics are clashing over a law meant to protect military personnel from predatory lenders, who can charge interest rates of as much as 400 percent. Kraninger says the bureau lacks the power to monitor violations of the statute — even though the CFPB did just that during the Obama administration — while Democrats insist that it can.
Wells Fargo may be headed for yet more regulatory trouble, with the Consumer Financial Protection Bureau telling Congress that “all options” are “on the table” for enforcing a consent order against the bank. The scandal-plagued bank is operating under consent orders that require it to remediate customers harmed by its wrongdoing and institute reforms. Recently, Sen. Elizabeth Warren (D-Mass.) and Sen. Sherrod Brown (D-Ohio) sent inquiries to several regulators asking about Wells Fargo’s progress in satisfying the orders.