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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 15, 2019On Tuesday, October 15, 2019, the Bureau Private Education Loan Ombudsman issued the 2019 Annual Report showing that from September 1, 2017 through August 31, 2019 the Bureau handled approximately 20,600 complaints related to private or federal student loans. Of these, there were approximately 6,700 private student loan complaints and 13,900 federal student loan complaints. The report also...September 26, 2019CBA Statement on Chairman Alexander’s Bipartisan Higher Education Legislation WASHINGTON, D.C. – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after Senate Health, Education, Labor and Pensions (HELP) Committee Chairman Lamar Alexander (R-Tenn.) introduced the “Student Aid Improvement Act of 2019”: “These bills fund important grant programs and make...September 12, 2019CBA Writes House Financial Services Committee on Student Lending WASHINGTON – The Consumer Bankers Association wrote the House Financial Services Committee to discuss needed student lending reforms in advance of the committee’s hearing examining student debt and non-bank student loan servicers, which primarily work to collect federal student loans. “As lawmakers look for solutions to help...August 16, 2019CBA Statement on CFPB Education Loan Ombudsman WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Consumer Financial Protection Bureau announced the appointment Robert G. Cameron as its new Private Education Loan Ombudsman: “We are glad Director Kraninger has filled this role and believe it should remain separate from the Office of...August 8, 2019Student loan debt has more than doubled in the last decade and 92 percent of that debt is held by the federal government. Loan forgiveness or free college have been the topic du jour from many presidential candidates. And, while they might make for good campaign rhetoric, these proposals are unlikely to become law. Luckily, Sens. Tim Scott (R-S.C.) and Joe Manchin (D-W.Va.) introduced legislation...July 23, 2019CBA on Warren, Clyburn Student Loan Plan Like all other similar plans, this proposal fails to make college more affordable for future generations WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today issued the following statement on legislation introduced by Sen. Elizabeth Warren (D-Mass.) and Rep. Jim Clyburn (D-S.C.) forgiving student loan debt: “This proposal does...July 11, 2019July 11, 2019 The Honorable Maxine Waters Chairwoman Committee on Financial Services 2129 Rayburn House Office Building U.S. House of Representatives Washington, D.C. 20515 The Honorable Patrick McHenry Ranking Member Committee on Financial Services 4340 O’Neill House Office Building U.S. House of Representatives Washington, D.C. 20515 Dear Chairwoman Waters and Ranking Member McHenry: On behalf...July 2, 2019The Consumer Bankers Association (CBA) is urging lawmakers to support the Student Loan Disclosure Modernization Act, which would require federal student loans to carry plain-language disclosures on the true cost of the loan. © Shutterstock In a letter to the bill’s sponsors, Sens. Tim Scott (R-SC) and Joe Manchin (D-WV), CBA officials point out that private student loans offered by banks already...June 28, 2019CBA Supports Bipartisan Bill to Improve Federal Student Loan Disclosures 90 percent of voters believe borrowers should receive disclosures detailing specific costs and terms before taking out an education loan WASHINGTON – The Consumer Bankers Association today wrote Sens. Tim Scott (R-S.C.) and Joe Manchin (D-W.V.) to support their Student Loan Disclosure Modernization Act. The bipartisan bill...
CBA Letter on Draft Legislation for HFSC Hearing on Student Debt and Student Loan Servicing