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Category Archives: Student Loans

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CFPB promotes online student financial aid resources

Posted in Student Loans

In a new blog post , the CFPB promotes its online financial aid resources to students who are now in the process of choosing which school to attend this fall.  The blog post directs students to a just-launched “crisp new version of our Paying for College tool kit,” stating that “[m]aking apples-to-apples comparison of your… More >

CFPB issues second report on servicemember complaints

Posted in Military Issues, Payday Lending, Student Loans

Earlier this month, the CFPB issued a press release describing its second snapshot report of complaints from military consumers.  The report details complaints the CFPB has received from servicemembers, veterans, and their families and the measures it has taken in response.  Between July 2011 and January 2014, the CFPB has received approximately 14,000 complaints, handling more than 250 complaints… More >

CFPB files enforcement action against for-profit education company over alleged predatory lending tactics

Posted in Student Loans

After hinting for months that it intends to use its enforcement powers to police lending in the higher education arena, the CFPB dropped the hammer on ITT Educational Services, filing suit against the for-profit college over alleged predatory lending practices. On February 26, the CFPB filed a complaint against ITT in the Southern District of… More >

CFPB supervision of student loan servicers to begin March 1

Posted in Student Loans

Later this week, on March 1, the CFPB’s final rule defining larger participants of the student loan servicer market becomes effective.   We expect the CFPB to immediately begin examining entities that qualify as larger participants.  Under the rule, the CFPB can supervise servicing of private and federal student loans by any nonbank entity that qualifies… More >

CFPB issues findings on handling of extra payments by private student loan servicers

Posted in Student Loans

In November 2013, the CFPB sent a letter to private student loan servicers asking them for information about their practices for handling extra payments from borrowers (i.e., payments in excess of the minimum amount due).  In a letter dated February 3, 2014, Rohit Chopra, the CFPB’s Student Loan Ombudsman, presented the CFPB’s findings based on the… More >

Federal agencies launch new servicemember higher education complaint process

Posted in Student Loans

Servicemembers now have more channels for submitting complaints relating to their higher education.  In addition to their ability to submit complaints about student loans via the CFPB’s complaint system, servicemembers using Post 9/11 GI Bill and other military education benefits for higher education can use a new online complaint system announced by several federal agencies,… More >

A numbers game?

Posted in Student Loans

In written testimony for his appearance before the House Financial Services Committee yesterday, CFPB Director Cordray advised that the CFPB has received “thousands of student loan complaints.”  When we sorted the student loan complaints in the CFPB complaint data base, we came up with 5,993 complaints.  That might sound like a lot but it’s worth… More >

CFPB continues push for more private student loan refinancings

Posted in Student Loans

Private student loan lenders and servicers who met last week with CFPB Director Cordray, Education Secretary Arne Duncan, and Acting Deputy Treasury Secretary Mary Miller got the “memo” that the regulators think they should be doing more to expand refinancing opportunities for  private student loan borrowers.  The meeting was the subject of a blog post… More >

Jeff Langer to join CFPB

Posted in CFPB People, Student Loans, Vehicle Loans

We have learned that Jeff Langer, an experienced attorney with a strong industry background, will be joining the CFPB to serve as Assistant Director, Installment and Liquidity Lending Markets.  In that position, Jeff will oversee auto and student lending.  (Corey Stone, CFPB Assistant Director, Deposits, Cash, Collections and Reporting Markets, will continue to oversee smaller… More >

CFPB sends enforcement action “early warning” to for-profit postsecondary education provider

Posted in CFPB Enforcement, Student Loans

In a Form 8-K filed with the SEC on December 27, 2013, ITT Educational Services, Inc. disclosed that it has received a CFPB “early warning” letter stating that the CFPB’s Enforcement Office is considering recommending that the CFPB take legal action against ITT.  Such letters, which are sent pursuant to the CFPB’s discretionary Notice and… More >

CFPB’s hand seen in student loan bill

Posted in Student Loans

Four Senate Democrats (Senators Boxer, Warren, Durbin and Reed) recently introduced a bill entitled the “Student Loan Borrower Bill of Rights.”  On March 1, 2014, the CFPB will begin overseeing servicers of federal and private student loans that qualify as “larger participants” and there is speculation that the bill was drafted with CFPB input. Fueling… More >

CFPB asks private student loan servicers for information on handling extra payments

Posted in Student Loans

The CFPB recently sent a letter to private student loan servicers asking them for information about their practices for handling extra payments from borrowers (i.e., payments in excess of the minimum amount due).  This past October, the CFPB released a sample letter for a student loan borrower to use to provide standing instructions to a… More >

CFPB revises student loan examination procedures

Posted in CFPB Exams, Student Loans

In conjunction with issuing its final “larger participant” rule for student loan servicers last week, the CFPB also revised its education loan examination procedures.  The revisions are intended to provide more extensive guidance for examiners to follow when examining student loan servicing by entities subject to the CFPB’s supervisory authority, whether banks or private student… More >

CFPB issues final larger participant student loan servicer rule

Posted in Student Loans

Yesterday, the CFPB issued its final rule defining larger participants of the student loan servicer market.  The final rule becomes effective on March 1, 2014.  Consistent with the proposed rule, the final rule defines larger participants to mean servicers with an “account volume” exceeding 1 million.  The final rule, which is based on the CFPB’s… More >

Chopra highlights student loan repayment plans

Posted in Student Loans

Earlier this week, Rohit Chopra, CFPB Assistant Director and Student Loan Ombudsman, spoke to the Federal Reserve Bank of St. Louis about student loan debt.  As he has on other occasions, Mr. Chopra referred to $1.2 trillion in student loan debt without pointing out that over $1 trillion of that debt comes from federal student loans. … More >

Final student loan servicer “larger participant” rule expected by year end

Posted in Student Loans

In remarks to the National Council of Higher Education Loan Resource’s “2013 Knowledge Symposium” held this week in St. Pete Beach, Florida, Rohit Chopra, the CFPB’s Student Loan Ombudsman, indicated that the CFPB’s final “larger participant” student loan servicer rule will be issued at the end of 2013.  The proposal, issued by the CFPB in… More >

CFPB student loan ombudsman issues second annual report

Posted in Student Loans

Yesterday, Rohit Chopra, the CFPB’s Student Loan Ombudsman, released his Second Annual Report which analyzes approximately 3,800 complaints received by the CFPB from private student loan borrowers between October 1, 2012 and September 30, 2013. (To put this in perspective, last year the Federal Reserve Bank of New York reported that there are approximately 37… More >

CFPB findings on campus banking products portend new limitations

Posted in Debit Cards, Deposit Accounts, Prepaid Cards, Student Loans

Findings on campus banking products released this past Monday by the CFPB in conjunction with a Banking on Campus Forum held in Washington, D.C. appear to be a harbinger of new limitations on the marketing of these products.  The findings were based on comments the CFPB received in response to a January 2013 notice seeking input on… More >

CFPB launches student loan initiative to help teachers and other public servants

Posted in Financial Literacy, Student Loans

The CFPB announced yesterday that it has launched a new initiative to help teachers and other public servants handle their student loan debts. The initiative has two components: a toolkit for school districts, non-profits and other public service employers and a “public service pledge” for such employers to make.  The toolkit is designed to help employers provide… More >

DOJ confirms investigation of private student loan SCRA violations

Posted in Student Loans

As we reported, in the CFPB’s “Mid-year snapshot of private student loan complaints” on complaints the CFPB received from October 2012 through March 2013, one of the top servicing issues reported by consumers was the continued difficulty experienced by some military borrowers in obtaining the 6% rate cap provided under the Servicemembers Civil Relief Act… More >

CFPB issues new report on private student loan complaints

Posted in Student Loans

The CFPB has issued a “Mid-year snapshot of private student loan complaints” that discusses issues raised in the 2,002 complaints the CFPB received from October 2012 through March 2013.  In the First Annual Report of the CFPB Student Loan Ombudsman which was released last October, the CFPB highlighted servicing issues raised by private student loan borrowers… More >

Senate Banking Committee to hold June 25 hearing on private student loans

Posted in Student Loans

Tomorrow, June 25, the Senate Banking Committee will hold a hearing on “Private Student Loans: Regulatory Perspectives.”  The four scheduled witnesses are Rohit Chopra, CFPB Student Loan Ombudsman, John Lyons, OCC Senior Deputy Comptroller for Bank Supervisions Policy and Chief National Bank Examiner, Todd Vermilyea, Fed Senior Associate Director, Division of Banking Supervision and Regulation, and Doreen Eberly,… More >

CFPB issues report on student loan affordability

Posted in Student Loans

As we predicted at last week’s meeting of the National Council of Higher Education Resources’ Private Student Loan Committee, the CFPB field hearing held last Wednesday in Miami was devoted to student loan affordability.  In fact, prior to the hearing, the CFPB released a report with just that title and the hearing was clearly intended… More >