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 4, 2017Legislation includes several CBA supported provisions to help students, but federal loan expansion could increase college tuition costs WASHINGTON, D.C. – The Consumer Bankers Association (CBA) thanked House Education and Workforce Committee Chair Virginia Foxx (R-NC) for her leadership in introducing the Higher Education Act reauthorization bill. The bill, introduced late Friday, contains...
November 21, 2017On Tuesday, November 21, 2017, the CFPB announced action against Citibank, N.A. for alleged student loan servicing issues. According to its press release, the Bureau claims Citibank misled borrowers into believing they were not eligible for a tax deductions on interest paid on certain student loans, incorrectly charged late fees and added interest to the student loan balances of borrowers who...
October 25, 2017The Consumer Bankers Association today sent a letter to Representatives Luke Messer (R-Ind.) and Emanuel Cleaver, II (D-Mo.) supporting their bipartisan Student Loan Disclosure Modernization Act (H.R. 4119). The legislation requires the Department of Education to streamline the “plain language” disclosure form and more clearly explain the costs and terms of federal student loans. The current...
October 6, 2017October 6, 2017 Office of Management and Budget New Executive Office Building Room 10235 Washington, DC 20503 RE: Docket No. CFPB-2017-0023; OMB Control Number: 3170-0064; Student Loan Servicing Market Monitoring Dear Sir or Madam, The Consumer Bankers Association (“CBA”) [1] appreciates the opportunity to comment on the proposed “Student Loan Servicing Market Monitoring” information collection...
September 29, 2017CBA to CFPB: Help Banks Serve Consumers in Need of Short-Term Credit A huge segment of consumers are struggling to make ends meet in a given month – 43 percent to be exact – according to a new CFPB survey. Since the FDIC and OCC issued guidance essentially pushing banks out of the small-dollar lending market, consumers have been forced to use less-safe, less-regulated and more costly entities to...
September 22, 2017September 20, 2017 Secretary of Education Betsy DeVos U.S. Department of Education C/O Ms. Hilary Malawer 400 Maryland Avenue, SW., Room 6E231 Washington, DC 20202 RE: Regulatory Review - Docket ID: ED-2017-OS-0074, Docket Number 2017-13157 Dear Secretary DeVos: The Consumer Bankers Association [1] and the American Bankers Association [2] (“the Associations) appreciate the opportunity to submit...
September 20, 2017September 20, 2017 Ms. Hilary Malawer U.S. Department of Education 400 Maryland Avenue, SW Room 6E231 Washington, DC 20202 RE: Docket ID ED-2017-OS-0074 Dear Ms. Malawer: As the national trade associations representing the majority of student loan providers in the higher education finance industry, including those loan holders, servicers, and guaranty agencies in the Federal Family Education Loan...
September 18, 2017On Monday, September 18, 2017, the CFPB took action against the National Collegiate Student Loan Trusts and their debt collector, Transworld Systems, Inc., for alleged illegal student loan debt collection lawsuits. The companies sued consumers for private student loan debt the companies could not prove was owed, or debt too old to litigate. The lawsuits allegedly relied on the filing of false or...
September 13, 2017WASHINGTON — Since 2010, the federal government has been the nation's primary student lender. But the incoming chairman of the Consumer Bankers Association says the government's record as a credit provider leaves much to be desired. “We believe we have the expertise” to underwrite student loans “better,” said Brad Conner, vice chairman of consumer banking at the $150 billion-asset Citizens Bank...Pages
CBA Letter of Support for H.R. 4119, Student Loan Disclosure Modernization ACT