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.
- October 16, 2014October 15, 2014Washington, D.C. (October 15, 2014) – CBA’s General Counsel Steve Zeisel issued the following statement in response to the Annual Report of the CFPB’s Student Loan Ombudsman: “The private student loan market is a small but integral part of how some students meet their education financing needs. With a sustained and incredibly low default rate of less than 3%, private student loans far outperform...September 24, 2014CBA Statement on Federal Student Loan Default Rate Washington, D.C. (September 24, 2014) – CBA’s President and CEO Richard Hunt issued the following statement after the U.S. Department of Education announced 13.7 percent of federal student loan borrowers defaulted within three years of repayment in fiscal year 2011. “It is clear from its abysmal 13.7 percent default rate the federal government...September 16, 2014September 11, 2014
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