CBA Statement on White House Higher Education Act Reform Principles
CBA Statement on White House Higher Education Act Reform Principles
CBA poll shows Americans support Administration’s call to place responsible caps on federal student loans to allow access to higher education while preventing overborrowing
WASHINGTON, D.C. – The Consumer Bankers Association today released the following statement supporting many of the reforms the Administration outlined in the release of its Higher Educations Act reform principles:
“Placing responsible limits on federal PLUS loans will allow students to achieve their higher education goals without taking on insurmountable levels of debt. The removal of the previous cap on Parent PLUS loans and the subsequent creation of the GRAD PLUS program has helped fuel increases in college tuition and the doubling of student loan debt in the last decade alone,” Consumer Bankers Association President and CEO Richard Hunt said.
“The Administration should be commended for addressing the root cause of the federal student loan crisis instead of simply attempting to treat the symptoms.
“In addition to responsible loan limits, the Administration’s principles supported providing more information to borrowers. CBA believes federal student borrowers and their families should have access to the same plain language, Truth in Lending Disclosures already provided to private loan borrowers. Providing personalized loan terms, such as a monthly payment amount, and allowing an apples-to-apples comparison of loan options will empower students to make the best financial decisions and help set them up for success post-graduation.”
NOTE: CBA conducted a poll of 1,000 registered voters this year gauging Americans’ attitudes about student loans and student debt. Among the findings, nearly 85 percent support placing responsible caps on federal loans to offer access to a quality education without setting up a debt trap post-graduation. The poll also found strong support for student loans carrying clear, personalized, plain-language disclosures about the loan’s total costs. Similar disclosures are already provided by private student lenders but do not exist for federal student loans.
Learn more about CBA’s student lending reform recommendations here and the poll here.
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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.
