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.
August 16, 2019CBA Statement on CFPB Education Loan Ombudsman WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Consumer Financial Protection Bureau announced the appointment Robert G. Cameron as its new Private Education Loan Ombudsman: “We are glad Director Kraninger has filled this role and believe it should remain separate from the Office of...
August 8, 2019Student loan debt has more than doubled in the last decade and 92 percent of that debt is held by the federal government. Loan forgiveness or free college have been the topic du jour from many presidential candidates. And, while they might make for good campaign rhetoric, these proposals are unlikely to become law. Luckily, Sens. Tim Scott (R-S.C.) and Joe Manchin (D-W.Va.) introduced legislation...
July 23, 2019CBA on Warren, Clyburn Student Loan Plan Like all other similar plans, this proposal fails to make college more affordable for future generations WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today issued the following statement on legislation introduced by Sen. Elizabeth Warren (D-Mass.) and Rep. Jim Clyburn (D-S.C.) forgiving student loan debt: “This proposal does...
July 2, 2019The Consumer Bankers Association (CBA) is urging lawmakers to support the Student Loan Disclosure Modernization Act, which would require federal student loans to carry plain-language disclosures on the true cost of the loan. © Shutterstock In a letter to the bill’s sponsors, Sens. Tim Scott (R-SC) and Joe Manchin (D-WV), CBA officials point out that private student loans offered by banks already...
June 28, 2019CBA Supports Bipartisan Bill to Improve Federal Student Loan Disclosures 90 percent of voters believe borrowers should receive disclosures detailing specific costs and terms before taking out an education loan WASHINGTON – The Consumer Bankers Association today wrote Sens. Tim Scott (R-S.C.) and Joe Manchin (D-W.V.) to support their Student Loan Disclosure Modernization Act. The bipartisan bill...
June 11, 2019Dear Chairman Green and Ranking Member Barr: On behalf of the Consumer Bankers Association (CBA), I would like to share our views about the student loan market and recommendations for improving outcomes for student loan borrowers as the Subcommittee on Oversight and Investigations holds the hearing entitled “An Examination of State Efforts to Oversee the $1.5 Trillion Student Loan Servicing...
May 20, 2019Helping struggling borrowers and fixing the federal student loan system were discussed this week at a joint event hosted by CBA, the Bipartisan Policy Center and the Aspen Institution. Rep. Donna Shalala (D-Fla.), top left, offered keynote remarks and stressed the need for better disclosures on federal loans. CBA’s Kris Fallon, center top, presented CBA’s policy recommendations for improving the...
April 26, 2019Some of our CBA Executive Banking School Year 3 Faculty in Jacksonville, FL meeting to prepare for this year’s session! Interested in EBS? Learn more and submit your students here b efore the May 15, 2019 deadline. See you all July 21-31, 2019 in Greenville, S.C.! Cajun Thoughts: ROBINHOOD IS BACK It appears Robinhood has applied for an OCC charter which means they would have virtually the same...
April 22, 2019CFPB Director Kraninger offered her first public remarks on Wednesday at a Bipartisan Policy Center event, laying out her vision for the Bureau . Prior to her remarks, several members of the CBA Team attended a breakfast with her. Cajun Thoughts: DIRECTOR KRANINGER’S FIRST PUBLIC REMARKS Many members of the CBA Team attended CFPB Director Kathy Kraninger’s first public remarks as head of the CFPB...
CBA Letter for the Record for HFSC Markup 7.11.19