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.
December 6, 2013CFPB Releases Final Nonbank Student Loan Servicing Rule On Tuesday, December 3, 2013, the CFPB released its final larger participant rule for nonbank student loan servicers. CBA commented on the proposed rule when it was issued in March, supporting of the Bureau’s approach to supervising nonbanks and the rule’s inclusion of federal student loans. The Bureau oversees student loan servicing for...
December 3, 2013
December 3, 2013Washington, D.C. (December 3, 2013) – Richard Hunt, president and CEO of the Consumer Bankers Association, released the following response to the Consumer Financial Protection Bureau’s (CFPB) finalized rule “Defining Larger Participants of the Student Loan Servicing Market,” issued today: “This finalized rule is an appropriate step to ensure all major participants in the student loan servicing...
October 18, 2013Shutdown Ends, Debt Default Averted This week, Congress finally came to its senses and funded the government and raised the debt ceiling. This has done untold damage to consumer borrowing and confidence. October’s numbers will tell the whole story. This all may be a repeat come January when government funding runs out again, and February when the debt limit is reached. Banks Step Up During the...
October 16, 2013Washington, D.C. (October 16, 2013) – Richard Hunt, president and CEO of the Consumer Bankers Association, released the following statement after the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman released his annual report : “CBA and its members involved in the private student loan market remain committed to working with the CFPB to make the private student loan market...
October 4, 2013We are thankful that yesterday’s incident at the Capitol was isolated, and that our first responders reacted quickly to ensure the safety of bystanders. Government Student Lending Default Rate Increases As the federal government's share in the marketplace has grown to 93% of all new originations, the Department of Education revealed this week federal loans now have a 14.7% three year default rate...Pages
CBA Letter to CFPB regarding Student Loan Payments