The Consumer Financial Protection Bureau (CFPB) announced today that it is seeking comments about the private student loan market. The Bureau wants to hear from everyone: borrowers, their families, current students, advocates, lenders, servicers, and school officials. You have 60 days after the notice is published in the Federal Register to comment.
According to the announcement:
“The private student loan market is one of the least understood credit markets. We know there are all sorts of private student loans: some from banks and credit unions, some from schools, and some from other types of lenders. We know that lots of students use these loans every year. But to make sure the market works for students, lenders, and schools, we need a lot more information. Your stories can tell us more about how the private student loan market functions (or doesn’t), how and why you got a private loan, and how it is (or is not) working for you.”
This is a great opportunity, particularly for financially distressed borrowers to describe your experiences. Did you know that you were taking out a private loan? Do you know what the difference is between federal and private loans? Are you current on your private student loan? If not, how much are your payments compared to your income? Have you requested relief from your lender? (We have written previously about how hard it is to get relief from private student lenders).
We encourage you to let the CFPB know your stories AND your suggestions.