The Department of Education has announced that it has selected former CFPB Director Richard Cordray as the Chief Operating Officer of Federal Student Aid. In addition to having served as CFPB Director, Mr. Cordray formerly served as Ohio Attorney General.
Rohit Chopra, President Biden’s nominee for CFPB Director, previously served as the CFPB’s Private Education Loan Ombudsman under Mr. Cordray’s leadership. As Ombudsman, with Mr. Cordray’s support, Mr. Chopra was highly critical of private student loan servicing practices.
We expect Mr. Cordray’s selection by ED to lead to increased cooperation between the CFPB, state attorneys general, state regulators, and ED in supervisory and enforcement matters involving federal student loan servicers and collectors as well as for-profit colleges. There is also a strong likelihood that Mr. Cordray will help reinvigorate priorities from the Obama Administration that were reversed or weakened under the Trump Administration, such as the gainful employment rule and public service loan forgiveness.