Links in “Student Loans”
- Is CFPB’s Student Loan Report Merely Laying the Groundwork for Future Rulemaking?
CFPB's report on student loan complaints, particularly what happens when a co-signer dies or becomes insolvent, was soft on some key details, but appeared to be geared toward laying the groundwork for future rulemaking. [4/30]
- Members of Congress Ask DOE to Step Into College/Bank Partnerships
Group of Congressional leaders invite the Department of Education to exercise its authority to regulate relationships between colleges and financial providers of debit and prepaid cards used for distributing federal student financial aid to students. The letter is in response to concerns raised in a GAO study released last month that found high fees. [4/29]
- Challenging the CFPB’s Student Loan Complaint Report
If a co-signer for a student loan is in place, then it was likely the basis for the loan terms that were approved by the bank in the first place. Hence, it stands to reason that the death or bankruptcy of a co-signer may at least warrant consideration of whether to declare a default and accelerate the loan balance. Failure to do so could be considered an unsafe and unsound practice. [4/28]
- CFPB’s Mid-Year Report on Private Student Loans Released
17-page report notes the receipt of 4,600 complaints over six-month period associated with direct funding of student loans as well as debt collection related to such loans. Key topics including impact of co-signers default on student loans and complications with co-signer releases. [4/22]
- “Auto Defaults” on Student Loans Hit CFPB’s Radar
Some student lenders demand borrowers pay back the entire student loan upon the death or bankruptcy of a cosigner, even if the borrower has never missed a payment, a practice that the CFPB is criticizing. [4/22]
- The Key to Managing Student Loan Debts
CFPB Director Richard Cordray stated, "If these borrowers could refinance, their debt would be much more manageable." In this article, Credit Union Student Choice delineates what credit unions can do to help their members. [3/21]
- Student Loans: Defaults in 2014 to Decline, But Still Higher Than Pre-Recession
Moody's predicts the private student loan default rate will decline at a double-digit pace, but remain high by historical standards. [3/19]
- CFPB Goes After For-Profit Education Company
CFPB drops the hammer on ITT Educational Services over alleged predatory lending practices, accusing the for-profit educator of violations on the ban against unfair, deceptive or abusive practices by strong-arming students into high-interest loans, among other allegations. [3/3]
- GAO to Congress: Require Banks That Disclose Agreements with Colleges
U.S. Government Accountability Office recommends that Congress require financial institutions that provide debit and prepaid card services to colleges to publicly disclose their agreements. Areas of concern include fees, ATM access and neutrality. [2/18]
- Sound Advice for Private Student Lending
NCUA provided marching papers to its examiners late last year when the agency issued a supervisory letter addressing private student loans. From that letter there are three key takeaways on which credit unions that offer private student loans or those that are considering offering private student loan need to focus. [2/12]
