Student Lending

CBA is the public policy voice for private-market capital to fund loans supporting America’s students. Private student loans serve important purposes, primarily to provide gap funding for undergraduates who need to pay for college. In addition, for some families and graduate students, private loans can be a sensible alternative to federal loans, especially PLUS loans. Almost 97% of private student loans are being successfully repaid. That is largely due to the high level of underwriting required to receive a private loan, as well as the use of cosigners. Nearly 70% of private student loans are made by six lenders, five of which are CBA Members.  Collectively, private loans account for just 8% of loans being made today. The other 92% are Direct Loans made by the U.S. Department of Education. 

  • December 2, 2016
    Breaking: OCC Moving to Create Charters for FinTech Firms The OCC today issued a White Paper detailing plans to create special purpose charters for fintech firms and is seeking comments on the various issues raised by this initiative. We applaud the OCC for their efforts to further explore chartering, and we will provide the agency with our reactions – particularly in regard to ensuring a level...
  • October 31, 2016
    On Monday, October 31, 2016, the CFPB released the 13th edition of its Supervisory Highlights . The report revealed, during the review period, recent confidential supervisory resolution resulted in restitution to over 225,000 consumers totaling approximately $11.3 million. Additionally, the CFPB stated its supervisory activities have either led to or supported two recent public enforcement...
  • October 31, 2016
    On Monday, October 31, 2016, the CFPB issued amendments to its service providers bulletin from 2012 to provide further guidance on managing third-party relationships. The Bureau notes there are many recognized benefits for working with service providers. However, it reminds supervised banks and nonbanks they may be ultimately responsible for any service provider lapses in complying with the...
  • October 28, 2016
    Crystal Ball: the CFPB’s 2017 Priorities During a speech earlier this week, CFPB Director Richard Cordray outlined the Bureau’s three priority areas for enforcement actions and supervision in 2017: consumer complaints, redlining and Real Estate Settlement Procedures Act (RESPA) violations. In light of the recent Appeals Court decision, which rejected the CFPB’s interpretation of portions of RESPA...
  • October 27, 2016
    Private lenders are revising student loan contracts to ensure people are not placed in default when the co-signer of their loan dies or declares bankruptcy, putting an end to a practice brought to light by the Consumer Financial Protection Bureau. In a letter obtained by The Washington Post, Consumer Bankers Association President Richard Hunt informed CFPB director Richard Cordray that the 10...
  • October 27, 2016
    On Thursday, October 27, 2016, the CFPB Consumer Advisory Board (CAB) met in Washington, D.C. to discuss debt collection and student loan serving. In his prepared remarks , CFPB Director Richard Cordray asserted one in three consumers (70 million) were contacted by a debt collector in the past year and discussed the two-pronged approach to the debt collection proposal – one for third party debt...
  • October 27, 2016
    Washington, D.C. – Furthering its commitment to student loan consumers across the nation, members of the Consumer Bankers Association’s (CBA) Education Funding Committee who originate loans are bringing certainty to consumers by clarifying a long-time policy that their banks will not place a good-standing loan in default in the event a co-signer files for bankruptcy or dies. In addition, the...
  • October 21, 2016
    Time to Revamp the CFPB Structure Last week, a federal court decided a sitting president could immediately remove a CFPB director on a whim. This decision is concerning as it subjects the Bureau to political pressures by placing its directorship under the thumbprint of the president. In response, I penned an op-ed in USA Today calling for a five-person, bipartisan commission at the CFPB. With...
  • October 19, 2016
    Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), issued the below statement following the CBA’s oral arguments today in its Telephone Consumer Protection Act (TCPA) case against the Federal Communications Commission (FCC), ACA International v. FCC . “By imposing unworkable standards in its 2015 TCPA Omnibus Order, the FCC effectively severed the lines...

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