CBA on House Democrats’ Higher Education Proposal
CBA on House Democrats’ Higher Education Proposal
WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt released the following statement after Democrats on the House of Representatives’ Committee on Education and Labor introduced higher education legislation:
“This bill takes a positive step on one of the most common-sense student loan reforms by recognizing the need for better federal loan disclosures. Borrowers deserve to know the true cost of federal student loans and the Department of Education should bring federal loan disclosures, which currently mask the cost, in line with the pro-consumer standards required of private lenders. The bipartisan Student Loan Disclosure Modernization Act introduced by Congressmen Cleaver and Banks is a perfect template for this effort.
“However, the overall bill falls short when it comes to dealing with the cost of college which has to begin with fundamental reforms to federal student loan programs. These virtually unlimited programs have fueled both skyrocketing tuitions and student debt burdens - and the bill remains silent on this fact.
“Finally, refinancing existing direct and well-performing private loans only moves borrowers into a broken system already experiencing double-digit default rates, limits future access to credit, and puts taxpayers on the hook for even more debt.”
NOTE: More information on CBA’s student lending reform proposals is available atconsumerbankers.com/educationfunding
###
About the Consumer Bankers Association:
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.
