Committee on Education and Labor : U.S. House of Representatives

Press Releases

Chairman Miller Statement on FTC’s New Consumer Guide on Student Lenders’ Deceptive Marketing Practices
FTC Launches Consumer Education Effort as Part of Investigation Requested By Miller

Wednesday, June 25, 2008

 

WASHINGTON, DC -- In the wake of its ongoing investigation into deceptive student lender marketing practices, the Federal Trade Commission today released a new consumer guide created with the U.S. Department of Education to help students and parents detect questionable lender marketing materials and practices. The FTC began its investigation at the request of U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, after the committee came across examples of unfair and deceptive marketing letters last year. Miller issued the following statement on the FTC’s new guide and ongoing investigation.

“For too long, students have had virtually no protections from the confusing, misleading, and even predatory marketing materials used by many private lenders. With students still lining up their financial aid options for the fall, this new guide should serve as a resource to help students steer clear of manipulative or shady loan offers. I commend the FTC for responding to my request and launching this effort. I look forward to learning more about what the FTC uncovers as it continues this important investigation.

“In Congress, we are working to finalize legislation that would provide vital consumer protections to students when navigating the often murky world of college loans. As college costs continue to soar, we must do everything we can to help students find the best possible deals on their loans and ensure that our nation’s student loan programs are working in the best interests of consumers – not companies.”

Miller is the author of legislation, the College Opportunity and Affordability Act, that would put a stop to deceptive lender marketing practices and provide students with much-needed consumer protections when borrowing and repaying federal and private student loans. That bill was passed by the House in February; the House and Senate are now in the process of conferencing the legislation. For more information on the legislation, click here.

To see the Federal Trade Commission’s consumer guide on student lenders’ deceptive marketing practices, click here.

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