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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 2, 2021WASHINGTON – In a new letter sent to the U.S. Senate Committee on the Judiciary, Consumer Bankers Association President and CEO Richard Hunt expressed caution around efforts to change bankruptcy treatment for student loans, which would increase the cost of credit for future borrowers and fail to address the root cause of the student lending crisis in America today – unrestrained federal lending...
- July 27, 2021 - 1:00PMPastJuly 27, 2021WASHINGTON – In a new letter sent to the U.S. Senate Banking Subcommittee on Economic Policy ahead of their Tuesday hearing entitled “Protecting Student Loan Borrowers and the Economy in Upcoming Transitions,” Consumer Bankers Association President and CEO Richard Hunt outlined the need to reimpose limits on unrestrained federal student lending to immediately address the rising student debt...June 30, 2021 - 2:00PMPastJune 24, 2021WASHINGTON – As the Administration and Congress evaluate proposals to address the nation’s federal student debt crisis, the Consumer Bankers Association supports improvements to federal higher education funding. In advance of Secretary Cardona’s Thursday testimony on Capitol Hill, CBA sent a letter to the House Committee on Education and Labor advocating for needed changes to federal student loan...May 3, 2021CBA Statement on President Biden’s Pick to Oversee Federal Aid Office WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Biden Administration selected former Consumer Financial Protection Bureau chief Richard Cordray to head the Office of Federal Student Aid in the U.S. Department of Education: “I called former director Cordray today...April 30, 2021CBA Applauds Introduction of Student Loan Disclosure Modernization Act In letter to Senators Manchin and Scott, CBA touts bipartisan legislation as an important step in empowering borrowers to make informed decisions about financing higher education WASHINGTON – As the Administration and Congress evaluate proposals to address the nation’s federal student debt crisis, the Consumer Bankers...April 29, 2021Dear Senators Scott and Manchin: On behalf of the Consumer Bankers Association (CBA), I write to express our strong support for The Student Loan Disclosure Modernization Act. CBA is the voice of the retail banking industry whose members operate in all 50 states, serve more than 150 million Americans, and collectively hold two-thirds of the country’s total depository assets. CBA members are also...April 13, 2021CBA: Restraining Federal Lending Critical to Reducing Excessive Student Loan Debt In letter to Senate Banking Subcommittee, CBA outlines practical solutions to ease student loan debt, protect borrowers WASHINGTON – As the Administration and Congress evaluate proposals to address the nation’s federal student debt crisis, Consumer Bankers Association today outlined commonsense reforms to reduce...April 13, 2021Dear Chairwoman Warren and Ranking Member Kennedy: On behalf of the Education Funding Committee of the Consumer Bankers Association (CBA), I am writing to provide some information to members of the Subcommittee in advance of the April 13, 2021, hearing, “The Student Debt Burden and Its Impact on Racial Justice, Borrowers, & The Economy.” We appreciate the Subcommittee’s interest in student...