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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.
- July 11, 2016On Monday, July 11, 2016, the U.S. House of Representatives passed H.R. 3179, the Empowering Students Through Enhanced Financial Counseling Act, by voice vote. The legislation increases the borrower counseling required prior to federal loan disbursement and repayment. The legislation also requirements that Direct Stafford and Grad PLUS loan borrowers be given “an explanation that Federal student...July 8, 2016Same-Day Paychecks According to a report from the New York Times this week, a growing number of employers are testing ways to provide their employees with faster access to their paychecks for a fee ranging from $0.50 to $5. Given the Federal Reserve’s recent report that nearly half the country cannot afford a $400 emergency expense, we certainly welcome these kinds of innovations. Additionally,...June 24, 2016Taking Our Message to Capitol Hill It is always great to have our members visit us at CBA HQ in Washington, D.C. This week, our Board of Directors and Mid-Tier Retail Executives came to town for their respective meetings and to visit the Hill. Our teams met with more than 20 lawmakers and their staffs, including House Speaker Paul Ryan, to share all the great work our members are doing on behalf...June 10, 2016June 10, 2016 Monica Jackson Office of the Executive Secretary Bureau of Consumer Financial Protection 1700 G Street, NW Washington, DC 20552 Re: Request for Information Regarding Student Loan Borrower Communications; Docket No. CFPB-2016-0018 Dear Ms. Jackson, The Consumer Bankers Association (CBA) is pleased to have the opportunity to comment on the Payback Playbook examples provided by the...May 26, 2016May 26, 2016 Senator Mark Kirk U.S. Senate 524 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Kirk: On behalf of the Consumer Bankers Association (CBA), I write to express my support for The 401(Kids) Education Savings Account Modernization Act of 2016 (S. 2471). CBA is the voice of the retail banking industry whose products and services provide access to credit for consumers and...May 13, 2016On Tuesday, May 10, 2016, the OCC issued a new “Student Lending booklet ” of the Comptroller’s Handbook , prepared for use by OCC examiners in connection with their examination and supervision of national banks and federal savings associations engaged in private student lending. This booklet addressed the risks in private student lending by banks and in regulatory expectations for safe and sound...May 6, 2016Spurred by ongoing reports of skyrocketing levels of student debt, and informed by a recent crackdown on student debt relief scams, the Consumer Financial Protection Bureau unveiled a new template designed to explain debt repayment options to borrowers. However, it met with distinct coolness from the Consumer Bankers Association, which claims in a statement that it does not address the “root...April 28, 2016On Thursday, April 28, 2016, the CFPB released its student loan Payback Playbook , a set of prototype disclosures designed to outline a path to affordable payments for borrowers trying to avoid student debt distress. The Payback Playbook provides borrowers with personalized information about their repayment options from loan servicers so they can secure a monthly payment they can afford. The...April 28, 2016Washington, D.C. (April 28, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) unveiling of the student loan Payback Playbook. “While we welcome the Obama administration’s efforts to help students better understand their payment obligations, we are disappointed the...
Letter to Senate Banking and HELP Committee re S. 3116