Sen. Elizabeth Warren [D-Mass.] has launched a new probe into a San Diego-based private student loan servicer, raising concerns about its work with the National Collegiate Student Loan Trusts and the impact of reduced oversight under the Trump Administration.
In a letter sent this week to Matt Myers, the chief executive of Goal Solutions, Warren, the ranking member of the Senate Banking Committee, questioned the company’s role in what she described as a “rapidly growing” private student loan market and criticized the administration for what she called the “dismantling” of the Consumer Financial Protection Bureau.
“The Trump Administration’s recent litigation dismissals and new legislation have significant implications for the financial health of students and families who borrow money to pursue higher education,” Warren wrote.
She specifically pointed to Goal’s ongoing servicing relationship with all 15 NCSLT trusts — entities that package and sell private student loan-backed assets to investors. These trusts, Warren noted, have a “well-publicized history of abusing student loan borrowers,” citing prior CFPB actions alleging that they and their subservicers sued students for debts they couldn’t prove, filed false affidavits, and tried to collect on time-barred debts.
Although Goal was not directly named in the CFPB’s earlier lawsuits, Warren argued that the company “continues to service all 15 of the NCSLT trusts that CFPB investigated.” She linked the decline in borrower protections to the Trump Administration’s decision to drop several enforcement actions, including cases against NCSLT and the Pennsylvania Higher Education Assistance Agency (PHEAA), writing that the dismissals “signal less aggressive enforcement of federal consumer protection laws.”
Warren asked Goal Solutions to clarify its risk management practices, litigation history, and collection procedures for delinquent borrowers, and to disclose any work with other major servicers.
Her letter comes as federal interest rate cuts and limits on federal borrowing push more students toward private loans. “With fewer options and protections for federal borrowers and with college costs continuing to skyrocket,” Warren warned, “more students and families will likely be pushed into the private market to finance higher education.”
