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.
April 25, 2014CFPB Releases Mortgage Closing Report In a report released on Wednesday, April 23, 2014, the CFPB found many consumers feel pressured by lenders to rush through the closing process and sign documents even when they did not fully understand the terms. The Bureau listed three major “pain points” for consumers during the closing process, which included: Not enough time to review : Consumers were...
April 25, 2014CBA/AOL March Finance Optimism Index Results: Partly Cloudy Results for the CBA/AOL Finance Optimism Index show a decline for the second month in row. Consumer polling in March showed a -6.2 level of optimism, compared to -2.6 last month - a decline of 3.6 points - as Americans grow more concerned about their current financial situation. With the impending tax deadline in April, consumers were...
April 22, 2014
April 21, 2014Washington, D.C. (April 21, 2014) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) study regarding private student loan repayment following the death of a cosigner: “When tragic circumstances occur, CBA members work with their customers carefully and compassionately. For example,...
April 21, 2014
April 18, 2014CFPB Expects Federal Student Loan Interest Rates to Increase On Monday, April 14, 2014, the CFPB's Student Loan Ombudsman, Rohit Chopra, penned a blog post titled “Explainer: Federal student loan interest rates to jump,” outlining an expected increase in rates for federal student loans. Rates are currently set under the Bipartisan Student Loan Certainty Act of 2013, which became law in August...Pages
Joint Comment Letter to DOE re: Title IV Program Integrity and Improvement – Negotiated Rulemaking