b'Student LendingDuring 2020, Goodwin tracked seven federal andOn March 27, President Trump signed into law the state enforcement actions related to student lending,emergency CARES Act, which suspended payment representing a significant decrease from the 18 actionsof federal student loans and collection efforts on Goodwin tracked in 2019. These actions includeddefaulted loans and set interest rates at 0% for an litigation, administrative actions, and settlementsinitial six months, until September 30, 2020. Those involving student loan servicers, student loan debt reliefbenefits were subsequently extended three timesproviders, and a trust of third-party private student loans.through September 30, 2021. It is likely that the Biden In bringing these actions, enforcers continued to largelyadministration will extend these benefits as well until rely on the CFPA and state consumer protection statutes.there is relative stability from the impact of COVID-19.The economic disruption from the COVID-19 pandemicDespite these efforts, states have encouraged the presented new compliance challenges for the studentfederal government to do more to protect student lending industry in 2020. Both the federal governmentborrowers that have been impacted by COVID-19. and state governments have pushed the industry toForexample, a coalition of 27 state attorneys general afford greater protections to student loan borrowers,sent a letter to the Department of Education, urging including through mandating forbearance periodsthe federal government to expand student loan relief for federal student loan borrowers. These initiativesmeasures. In addition, this year a growing number of are only likely to expand over the coming year, asstate attorneys general have sought to directly tackle student loan relief and reform is at the top of the Bidenperceived issues in the student lending space. In administrations regulatory agenda. addition to the 50-state settlement with the holder of ITT Technical Institutes student loans, Minnesota, New Jersey, Colorado, Pennsylvania, California, and Virginia Key Trends all took regulatory or enforcement action related to In contrast to 2019, the main focus of CFPB and FTCstudent lending this year. Given the popularity of student enforcement actions this year were smaller studentloan debt relief and the ongoing crisis, the trend of state loan debt relief providers and servicers, rather thaninvolvement in this space is likely to continue. national for-profit schools and student lenders. This resulted in agencies obtaining generally smaller2020 Highlightsjudgments throughout the year totaling $368 million in recoveriesa more than 60% decline in total recoveriesCFPB Settles with Discover Bank for $35 Millionyear-over-year. Furthermore, the majority of the amountIn December, the CFPB entered into a consent order recovered this yearapproximately $330 millionwaswith Discover Bank, The Student Loan Corporation, and the result of a single settlement with ITT EducationalDiscover Products, Inc. (collectively, Discover) resulting Services, which is discussed in more detail below.from alleged violations of a 2015 consent order, the Nowhere was the impact of COVID-19 felt more thanEFTA, and the CFPA. The 2015 consent order required in the student loan servicing market. On March 20, theDiscover to refund $16 million to consumers and to U.S. Department of Education implemented studentrectify its allegedly unlawful student loan servicing and loan relief efforts in response to the pandemics impactcollection practices. However, the CFPB alleged that on student borrowers. The Secretary of EducationDiscover failed to comply with the terms of the 2015 directed the office of Federal Student Aid to suspendconsent order by making material misrepresentations to loan payments, cease collections on defaultedconsumers regarding their loan information and failing to loans, and waive interest rates for a 60-day periodfully pay the redress agreed to under the 2015 consent for federal student loans held by the Department.order. The CFPB also alleged that Discover had violated 44'