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.
June 11, 2014Washington, D.C. (June 11, 2014) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement calling on Congress to focus on college affordability after Sen. Elizabeth Warren’s (D-MA) refinancing bill failed a cloture vote 56-38: “Private student borrowers have real options. Many private student lenders provide refinancing programs and others are...
June 4, 2014Testimony Submitted by the Consumer Bankers Association To the Senate Committee on Banking, Housing and Urban Affairs, Subcommittee on Financial Institutions and Consumer Protection For the Record of the Hearing “Student Loan Servicing: The Borrower Experience” June 4, 2014 Chairman Brown and Ranking Member Toomey, thank you for the opportunity to submit testimony on behalf of the Consumer...
June 3, 2014Washington, D.C. (June 3, 2014) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today called on the CFPB and Congress to join CBA in examining the explosion in college costs, which has helped to drive outstanding federal student debt to over $1 trillion, in advance of two Senate hearings tomorrow on the student lending market: “Since 1980, the average published...
June 2, 2014Private Student Loan Market Outperforms Federal Loan Programs Washington, D.C. (June 4, 2014) – Today, the Consumer Bankers Association (CBA) submitted testimony for the record to the Senate Banking Financial Institutions and Consumer Protection Subcommittee for the hearing entitled: Student Loan Servicing and the Borrower’s Experience . CBA’s testimony notes the strong performance of the private...
May 23, 2014CFPB Issues Supervisory Highlights for Nonbanks On Thursday, May 22, the CFPB issued a report highlighting illegal actions uncovered by the agency’s supervision of payday, debt collection, and consumer reporting markets. The report noted recent non-public CFPB supervisory activities overall have resulted in more than $70 million in remediation to approximately 775,000 consumers. Under the Dodd-...
May 23, 2014This Memorial Day, please take a moment and remember all of those brave servicemembers who have given their lives in service to our nation. Without their commitment, we would not have the freedoms we enjoy on a daily basis. From all of us at Team CBA, we wish you and your family a Happy Memorial Day. CFPB to Open Meetings to the American Public The CFPB has announced it will open up meetings of...
May 9, 2014CBA Issues Comment Letter on CFPB’s Debt Collection Survey Proposal On Tuesday, May 6, 2014, CBA issued a comment letter to the CFPB in response to its proposed consumer debt collection survey. The Bureau requested public comment on a proposal to mail a survey to consumers in an effort to learn about their experiences interacting with the debt collection industry. While CBA strongly supports the...Pages