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CBA Statement on CFPB Study on Private Student Loans
Washington, D.C. (April 21, 2014) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) study regarding private student loan repayment following the death of a cosigner:
“When tragic circumstances occur, CBA members work with their customers carefully and compassionately. For example, it is common practice for student loan lenders to release cosigners from loan obligations upon the death or permanent disability of a student borrower. We are not aware of lenders accelerating the payment of a loan in good standing upon the death or permanent disability of a cosigner as a typical practice and believe it to be a rare occurrence.”
The Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding two-thirds of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.