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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 28, 2020On Wednesday, October 28, 2020, CBA President and CEO Richard Hunt issued the following statement after the Consumer Financial Protection Bureau issued its annual report on student lending: “The latest report from the CFPB ombudsman points out what everyone paying attention to the student lending marketplace already knows: Private lenders are working responsibility with their borrowers to set...April 1, 2020 - 2:00PMPastMarch 17, 2020 - 2:00PMPastFebruary 10, 2020CBA Statement on Higher Education Proposals in President’s Budget WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement on the education reform proposals outlined in President Trump’s budget: “The President’s budget recognizes the need for fundamental reforms to the federal student loan system. Capping PLUS loans at responsible levels will ensure...February 3, 2020On Monday, February 3, 2020, the Bureau and the U.S. Department of Education ED announced a new coordination agreement in order to better serve student loan borrowers. Under the newly signed Memorandum of Understanding (MOU) the agencies will share complaint information from borrowers and meet quarterly to discuss observations about the nature of complaints received, characteristics of borrowers...February 3, 2020CBA Statement on Ed, CFPB Memorandum WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Department of Education and Consumer Financial Protection Bureau issued a Memorandum of Understanding related to the sharing of complaint data for federal student loans: “This is a positive step by the Department of Education and CFPB to help all...December 10, 2019CBA Writes Committee in Advance of Legislative Markup WASHINGTON, D.C. – The Consumer Bankers Association today wrote the Chair and Ranking Member of the House of Representatives’ Financial Services Committee to offer comments on several pieces of legislation the committee is considering. The letter addresses concerns with the Private Loan Disability Discharge Act (H.R. 4545), Student Borrower...October 30, 2019On Wednesday, October 30, 2019, the CFPB, in coordination with the Minnesota Attorney General, North Carolina Department of Justice, and the Los Angeles City Attorney, announced an action to stop alleged unlawful conduct by several related student-loan debt-relief companies. The Bureau alleges that since at least 2015, the debt-relief companies operated as a common enterprise and deceived...October 28, 2019CBA Writes Committee on Education Markup Calls for standardized disclosures on student loans, responsible lending caps to prevent debt traps WASHINGTON – The Consumer Bankers Association today wrote the Chair and Ranking Member of the House of Representatives’ Education and Labor Committee to offer comments on the upcoming College Affordability Act (H.R. 4674) markup. The letter calls for...October 28, 2019October 28, 2019 The Honorable Bobby Scott Chairman House Education and Labor Committee 2176 Rayburn House Office Building Washington, DC 20515 The Honorable Virginia Foxx Ranking Member House Education and Labor Committee 2101 Rayburn House Office Building Washington, DC 20515 Dear Chairman Scott and Ranking Member Foxx: On behalf of the Consumer Bankers Association (CBA), I write to share our...