Foxx Statement on FSA Vendor Memo
WASHINGTON, D.C., May 28, 2021
Rep. Virginia Foxx (R-NC), the Republican Leader of the House Committee on Education and Labor, issued the following statement in response to a memo released by Chief Operating Officer (COO) of the Office of Federal Student Aid (FSA) Richard Cordray. The guidance suggests that the Department of Education will start sharing borrowers’ private and aggregate data with state and local government agencies.
“COO Cordray’s guidance bows to the whims of state-based Democrat politicians who are more interested in putting companies out of business than helping struggling student loan borrowers. Congress charges FSA with the duty of running the federal student loan program for a reason. Federal programs need federal leadership. Yet COO Cordray’s first order of business is to pass his responsibilities onto others.
"There are real challenges facing the FSA. The entire federally held student loan portfolio reenters repayment in a few short months. At a time when Senators of his own party are demanding answers to this challenge, COO Cordray is sowing seeds of confusion.
"Borrowers and federal contractors need clear-eyed direction from the federal government. This disordered guidance is a disservice to American families."