- CBA on
- CBA Media
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.
- April 28, 2016On Thursday, April 28, 2016, the CFPB released its student loan Payback Playbook , a set of prototype disclosures designed to outline a path to affordable payments for borrowers trying to avoid student debt distress. The Payback Playbook provides borrowers with personalized information about their repayment options from loan servicers so they can secure a monthly payment they can afford. The...March 30, 2016On Wednesday, March 30, 2016, the CFPB issued a consent order to stop a student loan debt relief scam which allegedly tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers it was affiliated with the U.S. Department of Education. The CFPB ordered the company, Student Aid Institute, Inc., and its CEO, Steven Lamont, to pay a penalty, halt debt relief services...March 18, 2016Leadership Unplugged and Wearing Denim I wish we all were still in Phoenix wearing our jeans! CBA LIVE, once again, featured a sold-out exhibit hall, record attendance and an outpouring of social media engagement. If you missed a session, be sure to view #CBALIVE . With hundreds of tweets, you’ll be able to relive many key moments from Leadership Unplugged. Thank you to our attendees, sponsors...March 17, 2016On Thursday, March 17, 2016, Senators Bernie Sanders (I-VT), Patty Murray (D-WA), and Dick Durbin (D-IL) introduced legislation to expand Servicemembers Civil Relief Act (SCRA) protections. Specifically, the bill would lower the cap on all loan interest rates to three percent for those on active duty. If servicemembers are eligible for hostile fire or imminent danger pay, no interest will be...March 17, 2016On Tuesday, March 15, 2016, the CFPB requested a federal district court enter a final judgment and order the shutdown of Student Loan Processing.US, a student debt relief operation. The company allegedly charged customers millions of dollars in illegal upfront fees for federal student loan services. If the proposed consent judgment is entered by the court, Student Loan Processing must close...March 9, 2016A federal consumer advocacy agency is asking private student loan companies to stop using some confusing fine print to deceive borrowers. The Consumer Financial Protection Bureau (CFPB) on Tuesday challenged lenders who are “auto-defaulting,” demanding immediate and full repayment of a loan if a co-signer dies or files for bankruptcy, even when the loan is current and being paid on time. This...March 9, 2016The Consumer Financial Protection Bureau is clamping down on student loan lenders and servicers that automatically default on loans when a co-signer declared bankruptcy or dies. The agency said this week in its latest supervision report that such defaults are an unfair practice. The majority of private student lenders have contracts that include so-called auto-default clauses, whereby a lender or...March 8, 2016A top official at the Consumer Financial Protection Bureau on Tuesday said student loan companies are at risk of breaking the law if they place people in default when the co-signer of their loan dies or declares bankruptcy, signaling that the bureau may start legal action. These “auto defaults” leave borrowers with no choice but to repay the full balance or ruin their credit, making it difficult...March 7, 2016There are many traps that await students seeking to finance their college education. One of the most common involves co-signers, usually the student's parents or grandparents. Since they're a generation or two ahead of the student, it's not uncommon for co-signers to die before the loan has been paid off. When that happens, many lenders automatically declare the loan to be in default, leaving the...February 24, 2016February 24, 2016 The Honorable John Kline The Honorable Bobby Scott Chairman Ranking Member Committee on Education and the Workforce Committee on Education and the Workforce U.S. House of Representatives U.S. House of Representatives Washington, DC 20515 Washington, DC 20515 Dear Chairman Kline and Ranking Member Scott: The Consumer Bankers Association (CBA) appreciates the Education and...