The Federal Trade Commission (FTC) recently released a statement to the Department of Education about its 2022 figures, showing that student loan debt ranks second among types of consumer debt, affecting more than 45 million borrowers who owe a combined $1.75 trillion.
Samuel Levine, the director of the FTC's Bureau of Consumer Protection, weighed in with a statement of his own in a press release on June 21. Levine, who is a Harvard Law graduate and social justice advocate, has had a well-rounded career, including being a prosecutor for the Illinois Attorney General’s Office, with a focus on “predatory for-profit colleges.”
“Cracking down on predatory schools requires a whole-of-government approach, and we welcome the Department of Education’s renewed efforts to protect students,” Levine said, according to the FTC website. “We will continue to work closely with our partners across the government to ensure fairness for student borrowers and accountability for those who cheat them.”
The FTC reported in its statement that concerns have mounted around the deceptive practices that lead students into debt, which can result in more fraud in debt relief efforts. Education is a sector that attracts a large amount of consumer grievances. The latest annual data book for the FTC shows that almost 20,000 complaints were related to the broader education sector, which puts it in the top 25 categories for complaints.
The commission voted 3-0 to authorize the staff to submit the comment to the Department of Education, according to the FTC website. This statement by FTC staff shows that the FTC is placing a high priority on shielding consumers from dishonest and unjust practices in the field. The commission supports the record of enforcement and cites times where fraudulent claims by profit-oriented schools have been made, as well as misleading lead generation methods and sham student debt relief services.
The commission states that it approves of the efforts made by the Department of Education to safeguard consumers from practices in the education sector.
