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.
April 25, 2017On Tuesday, April 25, 2017, the CFPB released a monthly complaint snapshot highlighting consumer complaints about student loans. The snapshot shows that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment. April’s report also highlights trends seen in complaints coming from Nevada. As of April 1, 2017, the...
April 13, 2017April 13, 2017 The Honorable Mike Crapo Chairman Committee on Banking, Housing, and Urban Affairs U.S. Senate 534 Dirksen Senate Office Building Washington, D.C. 20510 The Honorable Sherrod Brown Ranking Member Committee on Banking, Housing, and Urban Affairs U.S. Senate 534 Dirksen Senate Office Building Washington, D.C. 20510 Dear Chairman Crapo and Ranking Member Brown: The Consumer Bankers...
March 17, 2017Three Weeks to CBA LIVE: Get Your Boots and Jeans Ready! With record-breaking banker attendance, a sold-out exhibit hall and over 1,300 attendees, CBA LIVE: Where [ it ] Begins is 2017's biggest retail banking event of the year. Be sure to join us in Dallas, April 3-5, at the Gaylord Texan to catch entrepreneur, Heisman Trophy winner and former Dallas Cowboys Quarterback Roger Staubach ,...
March 10, 2017Will the CFPB Cease Rulemaking in 2017? The year is well underway, and the CFPB has yet to release a new rule (no complaints here). To me, there are four possible rulemakings the Bureau could finalize before Director Cordray leaves office. They are: Arbitration; Small-Dollar; Debt Collection; and Overdraft Should the Bureau issue a rule, the Congressional Review Act would allow Congress to...
March 10, 2017BANKERS BACK STUDENT LOAN BILL: A bill that would require the Education Department to disclose a loan’s annual percentage rate to students getting federal loans at the time of application now has the support of the Consumer Bankers Association. “Many federal student loan borrowers learn the true cost of their education much too late,” Richard Hunt, the president of the group, said in a statement...
March 7, 2017Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement following the re-introduction of the Transparency in Student Lending Act, H.R. 1283 , by Representatives Randy Hultgren (R-IL), Luke Messer (R-IN), and David Scott (D-GA). “Many federal student loan borrowers learn the true cost of their education much too late. As a...
March 3, 2017Remembering Mark Czarnecki’s Leadership We are deeply saddened by the passing of our former Board Member, Mark Czarnecki , President and COO of M&T Bank. Mark was one of the first Board Members I met when I joined CBA in 2009. He provided me with keen insights and a steady hand during turbulent economic times. Mark began serving M&T customers in 1977 as an assistant branch manager before...
February 17, 2017On Friday, February 17, 2017, the CFPB held a briefing call to announce a proposed study on increasing transparency in the student loan servicing market. The Bureau seeks comment on an initiative evaluating student debt repayment methods, and tracking behaviors when consumers experiencing financial distress. The CFPB hopes to collect student loan data from the nation’s largest student loan...
February 11, 2017Before the Federal Communications Commission Washington, D.C. In the Matter of Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991 Petition for Reconsideration of Great Lakes Higher Education Corp.; Navient Corp.; Nelnet, Inc.; the Pennsylvania Higher Education Assistance Agency; and the Student Loan Servicing Alliance COMMENTS OF THE AMERICAN BANKERS ASSOCIATION AND...Pages
CBA Comment Letter re CFPB Student Loan Servicing Data Collection