Trump administration held back report revealing bank charged high fees to students Presented by Comcast

With help from Michael Stratford and Benjamin Wermund

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CFPB HID REPORT ON CAMPUS BANKING PRODUCTS: The Consumer Financial Protection Bureau kept hidden for months an analysis of financial products marketed on college campuses that showed Wells Fargo charged students fees that were, on average, several times higher than some of its competitors.

— The “unpublished” report, which was obtained by POLITICO and other groups last week through a Freedom of Information Act request, was produced by the office previously led by Seth Frotman, who quit as the bureau’s top student loan official in protest of Trump administration policies. Frotman said in his resignation letter that CFPB leaders had “suppressed the publication” of the report.

— The previously unseen analysis examined the fees associated with debit cards and other financial products provided by 14 companies through agreements with more than 500 colleges across the country. Wells Fargo provided roughly one-quarter of those accounts but collected more than half of all fees paid by students, according to the report data. The bank’s average annual fees per account were nearly $50, the highest of any provider.

— Why it matters: The report raises questions about whether campus accounts with high fees comply with Education Department rules requiring colleges to make sure the products they help promote are “not inconsistent with the best financial interests” of their students.

— CFPB first warned in December 2016 that some of the financial products being offered on college campuses may run afoul of those regulations. The latest report is a more in-depth analysis of the fees charged to students during the 2016-17 academic year, the first year colleges were required to make that information public. Michael Stratford has more here.

IT’S TUESDAY, DEC. 11. WELCOME TO MORNING EDUCATION. Is anyone else secretly tracking developments related to the “Top Gun” sequel? Ping me your favorite “Top Gun” quote or news tip at [email protected]. Share event listings: [email protected]. And follow us on Twitter: @Morning_Edu and @POLITICOPro.

TACKLING EMPLOYMENT OUTCOME METRICS: Students who want more details on future salary prospects with a degree or certificate from a particular higher education program often have a tough time finding helpful and comparable information. That’s because an “uncoordinated array of federal, state, and accrediting agency standards leads to inconsistently defined employment metrics across institutions and programs,” according to a new report out today by the Institute for College Access & Success.

— The report makes a series of recommendations, including that the federal government take the lead in standardizing the job placement rate definitions used by federal, state and accrediting agencies to evaluate programs.

— The report will be released this morning at 9:30 a.m. at an event in SVC-209 of the Capitol Visitor’s Center. Watch the livestream here.

ALSO OUT TODAY: A growing number of universities have endorsed a free speech policy statement known as the “Chicago Statement,” with 14 adoptions in 2018 alone, according to a new report by the Foundation for Individual Rights in Education that looks at university free speech policies. Read it here.

EDUCATION DEPARTMENT TO RECONSIDER TEACH GRANT CASES: Sen. Tina Smith (D-Minn.) on Monday praised the department's announcement that it would roll out a new process allowing “certain” recipients of a grant program for teachers who had their grants converted to student loans to “request reconsideration.”

— The department posted on the Federal Student Aid site that recipients of the Teacher Education Assistance for College and Higher Education — or TEACH — Grant program will be able to request a reconsideration if they meet certain requirements. It also said it would adopt a standardized annual paperwork certification date of Oct. 31.

— “This is a great first step for all the teachers who have been fulfilling the service requirements for the TEACH Grant program, but who had their grants converted into loans — with back interest due — because of minor paperwork issues related to the overly complicated annual certification process,” Smith said.

— Still, the nonprofit Public Citizen said in a report released Monday that the announced change “offers only a limited — and temporary — fix.” Noting that 63 percent of all program grants have converted to federal loans, the group said the department needs to do more. For example, the report said the department since 2008 has “unlawfully” required that grant recipients complete an annual certification form that never underwent a required Paperwork Reduction Act process.

NEW PUBLIC SERVICE ANNOUNCEMENT FOCUSES ON SCHOOL SAFETY: The group Sandy Hook Promise has released a new public service announcement that highlights behaviors of at-risk individuals. Titled “Point of View,” it’s part of a campaign by the group to raise awareness about the signs of a potential shooter and intervene before it’s too late. The group was formed by parents who lost children during the school shooting at Sandy Hook Elementary in Newtown, Conn., six years ago come Friday.

— Separately, the Hartford Courant obtained 1,000 pages of documents pertaining to the Sandy Hook shooter, Adam Lanza. “One thing becomes clear as the additional records are examined — Adam Lanza, from the age of about 3 until he was 18, was never off the radar of people who orbited around him — his parents, the teachers and counselors in the schools he attended, the psychiatrists who later tried to figure out what was happening with him,” the newspaper reported. “It is evident now that no single person grasped the full picture of what he was becoming.”

— The report comes as the federal school safety commission, which was created by President Donald Trump following the Feb. 14 shootings in Parkland, Fla., is expected to release its findings by the end of the year. POLITICO Pro’s Caitlin Emma reported last month that the Trump administration in recent months has been planning to do away with controversial Obama-era school discipline guidelines in conjunction with the report’s release.

POLITICO DataPoint

— View the full POLITICO Pro DataPoint graphic of the 116th freshman class here. Looking for more information on a specific member-elect? Click here for individual bios of all incoming freshmen. Want to add DataPoint to your Pro account? Learn more.

— Sarah Rubinfield has been named director of governmental affairs with the First Five Years Fund.

— The 2018 Higher Education Price Index released by Commonfund finds that inflation for U.S. colleges and universities rose 2.8 percent in fiscal 2018.

— A new report out today from the progressive D.C.-based think tank New America explores the abuses of correspondence programs, the precursor to today’s online higher education programs. An accompanying blog post highlights some of the key components of the report and puts it in context of upcoming negotiated rulemaking at the Education Department.

— Police arrest roughly 17 members of CUNY's faculty union during contract rally: POLITICO New York.

— Controversial virtual school operator pivots to job training: U.S. News & World Report.

— Ex-Baylor frat leader accused of rape wins plea deal with no jail time: Waco Tribune-Herald.

— Harvard quietly amasses California vineyards — and the water underneath: Wall Street Journal.

— From the community: Constance Jones Named CEO of the Noble Network of Charter Schools: Chicago Tribune.

— Oakland High teachers walk out in protest: East Bay Times.

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