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Tag Archives: Student Loans

Interagency task force issues recommendations on federal student loan servicing contracts

Posted in Student Loans

Pursuant to a March 2015 Presidential directive, an interagency task force consisting of the Department of the Treasury, Department of Education, Office of Management and Budget, and Domestic Policy Council has issued recommendations on best practices in performance-based contracting intended to ensure that federal student loan servicers “help borrowers responsibly make monthly payments on their… More >

CFPB issues new report on servicemember student loans

Posted in Military Issues, Student Loans

A new CFPB report entitled “Overseas & Underserved: Student Loan Servicing and the Cost to Our Men and Women in Uniform” contains the CFPB’s findings regarding student loan servicing problems faced by servicemembers.  According to the CFPB, it has handled more than 1,300 complaints from military borrowers relating to the servicing or collection of student… More >

CFPB update on student loan complaints continues to highlight co-signer release issues

Posted in Student Loans

The CFPB has issued a “Mid-year update on student loan complaints” that analyzes the approximately 3,100 private student loan complaints received by the CFPB between October 1, 2014 and March 31, 2015.  The update also analyzes the approximately 1,100 debt collection complaints related to student loans during the same period.  There is no indication as… More >

Rohit Chopra to leave CFPB

Posted in CFPB People, Student Loans

The Wall Street Journal and Politico have reported that Rohit Chopra, the CFPB’s student loan ombudsman, will be leaving the CFPB next week.  According to the reports, Mr. Chopra did not indicate in his resignation letter to Treasury Secretary Jacob Lew what his next position would be. Seth Frotman, the CFPB’s Deputy Assistant Director for… More >

CFPB Holds a Field Hearing on Student Loan Servicing Issues

Posted in Student Loans

On May 14th, the same day that the CFPB launched a public inquiry into student loan servicing loan practices (the “Request for Information”), the CFPB held a public field hearing in Milwaukee, Wisconsin to address issues with the student loan servicing industry. After a brief introduction by Zixta Martinez, Assistant Director of Community Affairs for… More >

CFPB issues request for information regarding student loan servicing and re-launches its “Repay Student Debt” tool

Posted in Student Loans

Consistent with its continued focus on student lending, the CFPB issued a new request for information regarding student loan servicing. The request for information seeks input from the public regarding all aspects of student loan servicing, including industry practices that may create repayment challenges or hurdles for distressed borrowers, and the economic incentives that may affect… More >

CFPB Student Loan Ombudsman Files Third Annual Report Highlighting Bureau’s Hot Button Issues in Student Lending

Posted in CFPB Enforcement, CFPB Exams, CFPB General, Student Loans

The CFPB released its third Annual Report of the Student Loan Ombudsman, Rohit Chopra, discussing complaints received by the CFPB about private student loans and the lessons drawn by the Ombudsman from those complaints.  Before turning to the substance of those complaints, and the conclusions drawn by the Ombudsman, we think it important to put… More >

Rohit Chopra from CFPB focuses on student loan modifications at ABA Consumer Financial Services Committee program in Chicago

Posted in Student Loans

I attended a program this morning entitled “All I Need to Know I Learned from the Government: A Look at the Regulatory and Enforcement Landscape for Student Lending .” Among the panelists was Rohit Chopra. Rohit serves as an Assistant Director at the CFPB where he leads an office that focuses on issues facing students… More >

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 >