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CBA Statement on Student Loan Marketplace
Washington, D.C. (September 5, 2013) – Richard Hunt, President & CEO of the Consumer Bankers Association, issued the following statement upon the announcement that students will have less options in student loan lending following the near government takeover of the student loan market:
“This is a troubling trend for students and taxpayers, meaning even less competition in the marketplace. Unfortunately, since the near government takeover of most—about 93%-- of the student loan program in 2010, federal student debt has exploded to the tune of over $1 trillion. There is no end in sight to this debt accumulation and its climbing default rate. This is especially concerning since federal loans, unlike education loans made by banks, do not involve an ability to repay assessment. The CFPB and the Department of Education should make college affordability and the federal student debt crisis a top priority.”
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.