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Tag Archives: Student Loans

Senator Hagan Introduces the Servicemember Higher Education Protection Act

Posted in Military Issues, Student Loans

New legislation, titled the Servicemember Higher Education Protection Act (the “Bill”), was introduced recently by Senator Kay Hagan (D-NC).  The Bill includes several provisions that expand protections under the Servicemembers Civil Relief Act (SCRA) with respect to student loans.     The Bill would amend the SCRA to expand the available interest rate limitation for student… More >

Student Loan Refinancing Bill Stalled in Senate

Posted in Student Loans

Late last week, the student loan refinancing bill introduced by Senator Warren (D-MA) came up 4 votes short of the 60 needed to end debate and prevent a filibuster.  If enacted, S. 2292, the Bank on Students Emergency Loan Refinancing Act, would establish separate refinancing programs for federal and private student loans.  It would generally… More >

Director Cordray testifies before Senate committee

Posted in CFPB General, Richard Cordray

Yesterday, the Senate Committee on Banking, Housing and Urban Affairs heard testimony from Director Cordray at its hearing titled “The Consumer Financial Bureau’s Semi-Annual Report to Congress.” Noteworthy aspects of Director Cordray’s testimony included the following: As they did at the Committee’s hearing on the CFPB’s Fourth Semi-Annual Report, Committee members  questioned Director Cordray about… More >

Senate holds hearings on student loans

Posted in Student Loans

Last Wednesday, the Senate Budget Committee and the Senate Banking Committee held separate hearings about student loans.  Interestingly, the CFPB was represented in only one of the hearings. The Senate Budget Committee held a hearing titled “The Impact of Student Loan Debt on Borrowers and the Economy,” which included testimony from the CFPB’s Student Loan… More >

Senate to hold two hearings on student loan issues

Posted in Student Loans

On Wednesday, June 4, the Senate Budget Committee will hold a hearing titled “The Impact of Student Loan Debt on Borrowers and the Economy.” The Committee will hear from the following witnesses: Rohit Chopra, Student Loan Ombudsman, Consumer Financial Protection Bureau Brittany Jones, Recent College Graduate and Former President, Student Virginia Education Association Richard Vedder,… More >

Cordray Discusses Student Loans at Boulder Summer Conference on Consumer Financial Decision Making

Posted in CFPB General, Richard Cordray, Student Loans

Director Cordray spoke at the Boulder Summer Conference on Consumer Financial Decision Making this week, addressing student loan debt as a “pressing problem and a matter of grave importance to public policy in America.” Student loan debt is the second largest debt category after the mortgage market, and has reached $1.2 trillion. According to Director… More >

CFPB student loan complaints report highlights alleged co-signer issues

Posted in Student Loans

The CFPB’s Student Loan Ombudsman has released a report entitled “Mid-year update on student loan complaints” that highlights issues related to co-signers of private student loans. In particular, the report focuses on “obstacles” faced by borrowers in obtaining co-signer releases and automatic defaults that occur upon a co-signer’s death or bankruptcy. The CFPB reports that… 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 >

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 >

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 >

CFPB to hold student loan field hearing on May 8

Posted in Student Loans

The CFPB has announced that on May 8, 2013,  it will hold a field hearing in Miami-Dade County, Florida on student loan borrowers.  CFPB Director Richard Cordray will be giving remarks at the event.  The CFPB’s practice has been to use field hearings as the venue for announcing a new release or initiative.  Student loan… More >

CFPB proposes supervision of nonbank private and federal student loan servicers

Posted in Student Loans

The CFPB has issued a proposal to supervise nonbank student loan servicers who qualify as “larger participants” in the student loan servicing market.  The CFPB already supervises student loan servicing by larger banks.  It also already supervises, without regard to their size, nonbanks that offer or provide private student loans and student loan servicing by such… More >

Director Cordray targets payday and student lenders in remarks to Consumer Advisory Board

Posted in Payday Lending, Student Loans

Director Cordray’s prepared remarks for yesterday’s meeting of the CFPB Consumer Advisory Board contained some particularly ominous signs for student and payday lenders. In the student lending area, Mr. Cordray focused on perceived similarities between servicing problems experienced by mortgage loan borrowers and those experienced by student loan borrowers.  Observing that student loan servicing has the “same problematic [financial] incentive… More >

Is the CFPB now the BMOC?

Posted in Student Loans

Last week, the CFPB muscled its way on campus, announcing that it will be looking at the impact of financial products marketed to students through their colleges and universities.  And by financial products, the CFPB made it clear that it was primarily referring to bundled school identification and debit cards, debit cards that are used to… More >

Chopra keeps focus on student loan servicing problems

Posted in Student Loans

In an editorial last week in the Philadelphia Inquirer, Rohit Chopra, the CFPB’s Student Loan Ombudsman, once again made servicers of student loans the focus of his comments. In August, in remarks to the Congressional Forum on Student Loans, Mr. Chopra spoke about lessons learned from the mortgage market that might be applied to student loans. One of those lessons… More >

CFPB issues report on servicemember student loan debt

Posted in Student Loans

A new CFPB report titled “The Next Front? Student Loan Servicing and the Cost to Our Men and Women in Uniform” focuses on repayment issues faced by servicemembers with private and federal student loans.  One of the report’s findings is that many servicemembers could be entering into more favorable repayment plans if they had better… More >

CFPB student loan ombudsman releases first annual report

Posted in Student Loans

Recently, the CFPB’s Consumer Response Team released its Snapshot of Complaints, providing a one-page summary of the approximately 2900 private student loan complaints received by the CFPB from March 1, 2012 through September 30, 2012.  Last week, only six days later, Rohit Chopra, the CFPB’s Student Loan Ombudsman, released his first Annual Report, providing a… More >

Pew report could bolster CFPB student loan concerns

Posted in Student Loans

The Pew Research Center has just released a report that seems likely to bolster the CFPB’s concerns about student loans. The report notes that “in nearly every demographic and economic category” more households are borrowing more money to finance the cost of a college education.  Perhaps not surprisingly, the report indicates that those households now… More >

Chopra student loan remarks could signal new CFPB proposals or actions

Posted in Student Loans

Recent remarks by Rohit Chopra, the CFPB’s Student Loan Ombudsman, to the Congressional Forum on Student Loans and in an interview with Bloomberg Radio could presage new CFPB student loan recommendations to Congress or even CFPB examinations, investigations, and/or rulemaking proceedings.  In his remarks to the Congressional Forum, Mr. Chopra analogized student loan borrowers who… More >

CFPB issues student loan report and launches online tool for problem student loans

Posted in Student Loans

The CFPB issued today its report to Congress on private student loans as mandated by Dodd-Frank, which the CFPB describes as the “Cycle of boom and bust in private student loan market.”  Issued jointly with the Department of Education, the report consists of five parts dealing with (1) lenders, loan markets and products, (2) borrower characteristics… More >

Student loans: lots of comments and another request for information

Posted in Student Loans

The CFPB has finally published the nearly 2,000 comments it received from individual borrowers, parents, and others as a result of the request for information in which it asked a series of questions to assist it in preparing a report about private student loans and set January 17, 2012 as the deadline for responses.  (We wrote about that request in an… More >