U.S. Rep. Janelle Bynum has introduced legislation aimed at restoring federal protections for student loan borrowers and young consumers, part of a broader effort to address the financial pressures facing younger Americans.
Bynum, who represents Oregon’s 5th Congressional District, joined with U.S. Rep. Suzanne Bonamici and U.S. Rep. Summer Lee to introduce the Students and Young Consumers Empowerment Act. The legislation would reestablish the Office for Students and Young Consumers within the Consumer Financial Protection Bureau.
The office was closed in 2018 during the Trump administration. According to the lawmakers, the office previously assisted more than 60,000 borrowers who submitted complaints about the student loan industry. The new legislation would restore the office and expand its authority to investigate risky lending practices, collect industry data and advocate for student borrowers.
“Our students deserve access to a high quality and affordable education,” said Bynum. “This bill puts an end to predatory lenders taking advantage of young Americans that are just trying to get a good education. I’ll always fight to make our education system more fair and to support the next generation.”
The legislation would establish the position of Assistant Director and Student Loan Borrower Advocate to lead the office and oversee efforts to support borrowers navigating both federal and private student loans. The proposal would also strengthen coordination between the Consumer Financial Protection Bureau and the U.S. Department of Education to help resolve complaints related to the student loan system.
Under the bill, the office would work directly with borrowers to address complaints against lenders, servicers and debt collectors. The office would also be authorized to gather data about industry practices and publish annual reports analyzing the student loan marketplace, campus banking practices and risks facing young consumers.
Bonamici said restoring the office would provide greater accountability within the student loan system and expand resources for borrowers who believe they have been treated unfairly.
“We have a responsibility to protect students and young consumers from fraudulent and dishonest lenders,” said Bonamici. “Reopening this important CFPB office is an important step forward for accountability in the student loan system. The bill also expands the resources available for those who have been cheated by student loan companies and for profit colleges.”
Lee said restoring the office would ensure student borrowers have stronger protections and a dedicated advocate at the federal level.
“For too long, students and young consumers have been left to navigate a financial system that too often puts profit ahead of people,” said Lee. “Restoring the Office for Students and Young Consumers is about making sure young borrowers have a real advocate in their corner, one that will hold predatory lenders and servicers accountable. As millions of borrowers continue to shoulder the burden of student debt, we need stronger oversight, better protections, and clear pathways to relief. This legislation takes an important step toward rebuilding the safeguards that were stripped away and ensuring the CFPB can fully deliver on its mission. I’m proud to support this effort to protect students, defend working families, and build a fairer financial future for the next generation.”
The legislation also builds on Bynum’s broader policy agenda focused on improving economic opportunity for younger Americans. In January, Bynum introduced the “K-30” agenda, a policy platform focused on expanding access to education, housing and employment opportunities for young adults.
If passed, the Students and Young Consumers Empowerment Act would also give Congress additional oversight tools to ensure the Consumer Financial Protection Bureau fulfills its responsibilities to protect student borrowers and young consumers.
