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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.
- 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...December 2, 2016Breaking: OCC Moving to Create Charters for FinTech Firms The OCC today issued a White Paper detailing plans to create special purpose charters for fintech firms and is seeking comments on the various issues raised by this initiative. We applaud the OCC for their efforts to further explore chartering, and we will provide the agency with our reactions – particularly in regard to ensuring a level...October 31, 2016On Monday, October 31, 2016, the CFPB issued amendments to its service providers bulletin from 2012 to provide further guidance on managing third-party relationships. The Bureau notes there are many recognized benefits for working with service providers. However, it reminds supervised banks and nonbanks they may be ultimately responsible for any service provider lapses in complying with the...October 31, 2016On Monday, October 31, 2016, the CFPB released the 13th edition of its Supervisory Highlights . The report revealed, during the review period, recent confidential supervisory resolution resulted in restitution to over 225,000 consumers totaling approximately $11.3 million. Additionally, the CFPB stated its supervisory activities have either led to or supported two recent public enforcement...October 28, 2016Crystal Ball: the CFPB’s 2017 Priorities During a speech earlier this week, CFPB Director Richard Cordray outlined the Bureau’s three priority areas for enforcement actions and supervision in 2017: consumer complaints, redlining and Real Estate Settlement Procedures Act (RESPA) violations. In light of the recent Appeals Court decision, which rejected the CFPB’s interpretation of portions of RESPA...October 27, 2016Private lenders are revising student loan contracts to ensure people are not placed in default when the co-signer of their loan dies or declares bankruptcy, putting an end to a practice brought to light by the Consumer Financial Protection Bureau. In a letter obtained by The Washington Post, Consumer Bankers Association President Richard Hunt informed CFPB director Richard Cordray that the 10...