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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.
- October 19, 2016Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), issued the below statement following the CBA’s oral arguments today in its Telephone Consumer Protection Act (TCPA) case against the Federal Communications Commission (FCC), ACA International v. FCC . “By imposing unworkable standards in its 2015 TCPA Omnibus Order, the FCC effectively severed the lines...
- October 17, 2016On Monday, October 17, 2016, CFPB Student Loan Ombudsman Seth Frotman released his annual report on student lending. In addition to outlining student loan related complaints received by the CFPB, this year’s edition focused on federal student loan borrowers’ transition from default to income-driven repayment. According to the Bureau, one-third of rehabilitated borrowers who would qualify for zero...October 14, 2016October 14, 2016 The Honorable Richard Cordray Director Consumer Financial Protection Bureau 1700 G Street NW Washington, DC 20552 Dear Director Cordray: The Consumer Bankers Association (CBA) appreciates your ongoing concern for student loan customers. We also appreciate the opportunity to work constructively with you and your team at the Consumer Financial Protection Bureau for the benefit of...September 30, 2016Wells Fargo’s John Stumpf Testifies Before House Committee On Thursday, Wells Fargo CEO and Chairman John Stumpf returned to Capitol Hill for a hearing before the House Financial Services Committee, nearly a week and a half after his testimony before the Senate Banking Committee. We at CBA wanted to capture the mood and intentions of Congress and federal regulators surrounding Wells Fargo, while...September 27, 2016Washington, D.C. (September 27, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today released the following statement after Senator Kirk (R-IL) and Senator Enzi (R-WY) introduced the Transparency in Student Lending Act, S.3399. “Empowering federal student loan borrowers with the information necessary to make sound financial decisions is a commonsense proposal...September 23, 2016Past and Present: Wells Fargo Hearings This week, the Senate Banking Committee held a hearing which included testimony from Wells Fargo Chairman and CEO John Stumpf , OCC Comptroller of the Currency Tom Curry , CFPB Director Richard Cordray and James Clark , Chief Deputy for the Office of the Los Angeles City Attorney. Here are comments from government officials: Comptroller of the Currency...September 6, 2016ITT Technical Institute announced it would close its more than 130 campuses on Tuesday, September, 6, 2016. Recently, the organization has faced considerable scrutiny and sanctions from the U.S. Department of Education (DOE), including a ban on enrolling new students receiving federal student aid. The closure will force more than 40,000 students to either continue their studies at another school...August 22, 2016On Monday, August 22, 2016, the CFPB entered into a consent order with Wells Fargo Bank for private student loan servicing practices which allegedly increased costs and penalized certain student loan borrowers. The Bureau identified breakdowns throughout Wells Fargo’s servicing process including failing to provide important payment information to consumers, charging consumers unnecessary fees,...August 1, 2016August 1, 2016 Mr. Jean-Didier Giana U.S. Department of Education 400 Maryland Avenue, SW Room 6W232B Washington, DC 20202 Submitted via email to www.regulations.gov RE: Docket ID ED-2015-OPE-0103 Dear Mr. Giana: As the trade associations representing the majority of student loan providers (guaranty agencies, lenders and servicers) in the Federal Family Education Loan (FFEL) program, we thank you...July 20, 2016On Wednesday, July 20, 2016, the U.S. Department of Education, joined by the CFPB and U.S. Department of Treasury, held a press call announcing new guidelines to encourage greater transparency and accountability in federal student loan servicing. Outlined in a 56-page memorandum , the policy direction gives five specific areas in which the agencies will focus their efforts: economic incentives;...