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. 

  • February 24, 2016
    On Wednesday, February 24, 2016, the House Education and Workforce Committee convened a hearing on the U.S. Department of Education’s Fiscal Year 2017 budget. The lone witness, Department Acting Secretary Dr. John King highlighted the proposed two percent increase in Department funding, which would promote preschool for all, expand the initiative to provide two years of free community college,...
  • February 24, 2016
    February 24, 2016 The Honorable John Kline The Honorable Bobby Scott Chairman Ranking Member Committee on Education and the Workforce Committee on Education and the Workforce U.S. House of Representatives U.S. House of Representatives Washington, DC 20515 Washington, DC 20515 Dear Chairman Kline and Ranking Member Scott: The Consumer Bankers Association (CBA) appreciates the Education and...
  • February 12, 2016
    Small-Dollar Lending Gets Presidential Attention Earlier this week, President Obama released his final budget proposal which included a $10 million dollar line-item that would fund a small-dollar loan program through Community Development Financial Institutions. President Obama is right to recognize low-and moderate-income American families often need access to short-term liquidity. But here is...
  • February 8, 2016
    On Monday, February 8, 2016, CBA responded to a request for comment by the U.S. Department of Education regarding their forthcoming Enterprise Complaint System, which is mandated by the White House Student Aid Bill of Rights Presidential Memorandum . CBA advocated that the Department follow the Federal Trade Commission model and keep complaints private and only conveys information to the...
  • February 8, 2016
    February 8, 2016 Director of the Information Collection Clearance Division Department of Education 400 Maryland Avenue SW., LBJ, Room 2E10 Washington, DC 20202–4537 Via electronic submission RE: Comment Request; Enterprise Complaint System Docket ID number ED–2015–ICCD–0138 Dear Director, The Consumer Bankers Association (“CBA”)1 appreciates the opportunity to respond to the Department of...
  • January 28, 2016
    On Thursday, January 28, 2016 the CFPB released the latest edition of its Monthly Complaint Report , which focused on complaints in the New York Metro area, as well as those falling into the “other financial services” category. Below are notable takeaways: For three months in a row, the top three “Most Complained about Companies” are credit bureaus, not banks. Prepaid complaints showed the...
  • January 12, 2016
    On Tuesday, January 12, 2016, President Obama delivered his final State of the Union Address in which he laid out a larger vision for the next five to 10 years. In his address, the President presented four big questions for the country to answer regardless of who is in control of the next Congress or White House: (1) How do we give everyone a fair shot at opportunity and security in this new...
  • December 21, 2015
    For Immediate Release: December 21, 2015 Contacts: Jeannie Bunton ; Bobby Grant Phone: (202)-552-6370; ( 631)-565-9678 Private Student Loan Delinquency Rates are the Lowest Since Before 2008 Washington, D.C. (December 21, 2015) – Steve Zeisel, Executive Vice President and General Counsel of the Consumer Bankers Association, issued the following statement after MeasureOne released “ Q3 2105...
  • December 4, 2015
    NY Times : Free Tuition Is Not the Answer Catharine Hill, president and professor of economics at Vassar College, penned a very interesting op-ed in the New York Times this week to explain why free tuition is not a silver bullet for our college affordability problems. President Hill noted, "...if our real goal is to improve college access and affordability for students from low- and moderate-...
  • October 30, 2015
    CFPB Takes Aim at Employment Background Screening Report Providers On Thursday, October 29, 2015, the CFPB announced an enforcement action against two of the largest employment background screening report providers - General Information Services and its affiliate, e-Background-checks.com, Inc. In the consent order , the Bureau alleged the companies violated the Fair Credit Reporting Act by...

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