CBA Statement on Ed, CFPB Memorandum

February 3, 2020
Nick Simpson

CBA Statement on Ed, CFPB Memorandum

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Department of Education and Consumer Financial Protection Bureau issued a Memorandum of Understanding related to the sharing of complaint data for federal student loans:

 

“This is a positive step by the Department of Education and CFPB to help all student loan borrowers. Sharing this information will ensure a better, more meaningful view of the entire student loan universe, 90 percent of which is originated by the federal government.

 

“CBA has long called for consumer protection parity between federal and private student loans. Currently, every private loan contains clear, plain-language disclosures and approximately 98 percent of private loan borrowers are successfully repaying their loans. Federal loans, on the other hand, come with opaque disclosures which mask the true cost of a loan and have a double-digit default rate.”

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.