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. 

  • March 1, 2019
    Join us April 1-3, 2019 in Washington, D.C. for CBA LIVE 2019: The Currency of NOW to experience 90 hours of programming, powerhouse speakers and unprecedented networking with senior bankers. Sign up here to be part of retail banking's must-attend event. Cajun Thoughts: BILL PAY SOLUTIONS I read an article this week about the company ClickSWITCH which offers an automated account transfer solution...
  • February 27, 2019
    CBA Writes Department of Ed, CFPB to Improve Federal Student Loan Disclosures WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt wrote Consumer Financial Protection Bureau Director Kathy Kraninger and Secretary of Education Betsy DeVos requesting their respective agencies work to improve federal student loan disclosures. Currently federal student loan disclosures do not...
  • February 26, 2019
    CBA Comments on House Financial Services Credit Reporting Hearing WASHINGTON – The Consumer Bankers Association (CBA) wrote House Financial Services Committee Chairwoman Maxine Waters (D-Calif.) and Ranking Member Patrick McHenry (R-N.C.) in advance of the committee’s hearing examining credit bureaus and credit reporting. A copy of CBA’s letter is available here . On the draft Comprehensive...
  • February 21, 2019
    CBA Challenges Gov’t to Stop Opaque Federal Student Loan Practices, Introduce Responsible Caps to Prevent Federal Loan Debt Traps New survey shows majority “very concerned” about student debt, support greater federal loan disclosures and reasonable caps WASHINGTON – Americans strongly believe student loans should carry clear, personalized, plain-language disclosures about the loan’s total costs,...
  • February 19, 2019
    February 19, 2019 The Honorable Emanuel Cleaver, II U.S. House of Representatives 2335 Rayburn House Office Building Washington, D.C. 20515 The Honorable Jim Banks U.S. House of Representatives 1713 Longworth House Office Building Washington, D.C. 20515 Dear Congressmen Cleaver and Banks: On behalf of the Consumer Bankers Association (CBA), I write to express our strong support for H.R. 1161, The...
  • February 15, 2019
    CBA’s Education Funding Committee was in D.C. last week to meet with new members of the House Education and Labor Committee as well as the Senate HELP Committee to discuss the benefits of private student loans, advocate for a ‘Know Before You Owe’ policy and solutions to prevent over borrowing on federal student loans. Our members serve as the primary industry voice for private student loan...
  • February 8, 2019
    Obviously the big news this week is the merger of BB&T and SunTrust . Knowing both Kelly King and Bill Rogers for years, I recount many of my conversations with them separately. At last year’s CBA Executive Banking School, Kelly stated BB&T would not buy an out of market bank, and would rather buy a larger bank than a smaller bank because of compliance. And Bill told me he was not going...
  • February 2, 2019
    The Consumer Bankers Association pegged the tally of outstanding loans at about 300 for each day of the shutdown, or about $2 billion in lending, according to a letter it sent to President Donald Trump and Congressional leaders Jan. 22. "Small business is going to be the first place you're going to see the impact of the shutdown, because a lot of these loans stop as soon as the shutdown occurs,"...
  • January 28, 2019
    CBA Supports Bicameral Student Loan Transparency Legislation Commends sponsors for requiring same increased disclosure on federal student loans already on private student loans WASHINGTON – The Consumer Bankers Association today wrote Senator Mike Enzi (R-Wyo.) and Congressman John Curtis (R-Utah) to support their Transparency in Student Lending Act. The bicameral legislation was introduced today...
  • January 28, 2019
    January 28, 2019 The Honorable John Curtis U.S. House of Representatives 125 Cannon House Office Building Washington, D.C. 20515 The Honorable Mike Enzi U.S. Senate 379A Russell Senate Office Building Washington, D.C. 20510 On behalf of the Consumer Bankers Association (CBA), I write to express our strong support for the Transparency in Student Lending Act. CBA is the voice of the retail banking...

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