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.
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...
January 27, 2017Busy First Week for the Trump Administration The new Administration is off and running. During President Trump’s first week in office, he announced a “regulatory freeze” for all executive departments and agencies. He also signed a host of executive orders on issues ranging from health care to immigration. With former South Carolina Governor Nikki Haley confirmed as U.N. Ambassador and Rep. Mike...
January 18, 2017On Wednesday, January 18, 2017, the CFPB announced it has taken action against Navient for allegedly failing borrowers in repayment by providing bad information, processing payments incorrectly, and neglecting to act when borrowers complained. The Bureau also alleges the company misled borrowers on their rights to lower repayments.
January 5, 2017On Thursday, January 5, 2016, the CFPB released a report examining complaints from older student loan borrowers about servicing practices which may jeopardize their long-term financial security. In the last decade, the number of older student loan borrowers has quadrupled and the amount of debt per older borrower has roughly doubled, as many take out loans for children or grandchildren. According...
December 9, 2016CBA, CUNA, NAFCU, ICBA Call for a Commission at the CFPB This week, CBA, the Credit Union National Association, the Independent Community Bankers of America, and the National Association of Federal Credit Unions, which combined represent more than 12,000 financial institutions across America, wrote to Senate leaders calling for the creation of a five-member, bipartisan commission at the CFPB. The...
December 2, 2016The hardest lesson too many college students are learning is the true cost of their federal student loans when the bill from Uncle Sam comes due. Unlike disclosures from private lenders for mortgages, car loans and student loans, the U.S. Department of Education withholds critical financial information meant to inform borrowers of loan terms before funds are provided. Meanwhile, the Consumer...Pages
CBA & ABA Comment Letter to FCC re TCPA Student Loan Servicers Petition for Reconsidration