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.
January 4, 2019Cajun Thoughts: The 116 th Congress convened yesterday with both new and returning members being officially sworn in. The CBA Team was spread out meeting with various members including Sen. Carper, Sen. Sinema, Sen. Cramer, Rep. Hollingsworth , Rep. Beatty , Rep. Meeks , and Rep. Graves . This is one of my favorite days of the year as our democracy once again prevails with a peaceful transition...
December 21, 2018Cajun Thoughts: HOLIDAY WEEK Today begins one of my favorite weeks of the year, where I head down to Jennings, Louisiana to spend time with my mother, three older sisters and more than 10 nieces and nephews. As always, I will be visiting Walmart, Sonic, Boudin King and the 14 payday lenders. I hope all of you have time to spend with your families as we prepare for 2019 … WHAT’S IN A NAME I never...
October 12, 2018Education Funding Committee Members meet at CBA World HQ (Top Left) and outside the Eisenhower Executive Office Building following a meeting with the Vice President's economic team; Community Reinvestment leadership Yvonne Blumenthal of U.S. Bank and Sue Whitson of BMO Harris Bank, committee members discussing the OCC's CRA ANPR and CRA modernization (Bottom) with OCC Leadership D.C. DOWNLOAD...
October 3, 2018CBA President and CEO Richard Hunt penned this op-ed on the state of student lending, college debt and ways to address this looming crisis. In the piece, he corrects some of the most common myths surround student lending as well as some of the policy proposals CBA has recommended to ensure federal funds help those most in need while helping students and parents responsibly finance higher...
September 12, 2018CBA Announces Board Leadership Team, Sets Advocacy Agenda for Upcoming Year Todd Barnhart of PNC Bank becomes chair; Nitin Mhatre of Webster named Chair-Elect Listen to Barnhart discuss CBA’s Priorities, Changes in Industry Regulations Over the Last Decade on CBA’s Suite 550 Podcast, Available Here WASHINGTON – Heading into its 100th year, the Consumer Bankers Association (CBA) has elected Todd...
August 31, 2018D.C. DOWNLOAD OCC’s CRA ANPR Proposal : Comptroller of the Currency Joseph Otting is a CEO at heart and he showed it this week when the OCC issued its ANPR on the Community Reinvestment Act. The OCC issued the ANPR unilaterally, but we expect the FDIC and possibly the Fed to join in on the reform efforts before all is said and done. CBA’s Community Reinvestment Committee of almost 50 member banks...
August 31, 2018On Monday, August 27, 2018, Bureau of Consumer Financial Protection Student Loan Ombudsman Seth Frotman resigned in a heated letter to Acting Director Mick Mulvaney. In his resignation, Frotman claimed the new administration’s policies were harming students and families and the Bureau has “abandoned its duty to fairly and robustly enforce the law.” Frotman also alleged the agency’s leadership “...
July 31, 2018On Tuesday, July 31, 2018, the Treasury Department released a report on Fintech and Innovation, issuing broad and specific recommendations to empower consumers and to facilitate innovation in the U.S. financial system. This is the fourth report from Treasury as part of its effort to implement the President's Executive Order on Core Principles for Regulating the United States Financial System. In...
July 25, 2018CBA on House Democrats’ Higher Education Proposal Legislation would lead to higher tuition, student debt WASHINGTON – The Consumer Bankers Association today expressed concerns with the Higher Education Reform proposal announced by Democrats in the House of Representatives. “There are some aspects of this plan we support, but taken as a whole this virtually unlimited source of federal lending,...
July 16, 2018CBA Says Recent Student Lending Legislation Misdirected, Needed for Federal – Not Private – Loans CBA: “Private lenders offer a responsible product to help students achieve their education goals with transparent, plain language know before you owe information. The same cannot be said of the current state of federal student lending, which saddles students with unmanageable debt.” Washington, D.C...Pages
