These companies are not banks, but by handling student loan payments, they play a powerful role in the financial lives of millions of Americans.
For example, the CFPB is currently suing Navient, the largest student loan servicer.
"A major objective of the agreements was to reduce paperwork burden on companies subject to laws administered by both agencies," Chopra said.
In a blog post, the CEO Jack Remondi says the real issue is "an overly complex student loan system in need of reform." CFPB had two memorandums of understanding with the Education Department that allowed the two to share information and cooperate on enforcement.
At the end of August, the Department of Education terminated those arrangements. Virginia Foxx, the North Carolina Republican who chairs the House education committee, praised the move in a press release.
Education Secretary Betsy De Vos is being sued by several states for delaying a regulation designed to make it easier for defrauded borrowers to get their money back.
Julian Schmoke Jr., the department's new chief of student loan enforcement, has worked for a for-profit college.
A total of 800,000 loans will be audited, and the companies will pay at least .6 million, in some cases directly to consumers.