Some states are taking action to help borrowers with private student loan debt in addition to other general debt relief steps. A number of state attorney general offices have reached an agreement with private student loan lenders to provide assistance during the Covid-19 crisis. Those lenders have agreed to offer the following forms of relief […]

The ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act’’ provided much-needed relief to some federal student loan borrowers in the face of the coronavirus crisis. The package, however, fell short in several critical consumer protection areas, including student loans. As we explained in a summary of the key student loan repayment provisions […]

The Consumer Financial Protection Bureau (CFPB) asked for comments on student loan servicing a few months ago.  Thousands of borrowers and their advocates responded before yesterday’s deadline, highlighting again and again that the current system does not work well for borrowers and is not created to ensure that borrowers have enforceable rights to quality service […]

The Consumer Financial Protection Bureau (CFPB) has launched a public inquiry into student loan servicing practices.  The issues that the Bureau is seeking information on include: industry practices that create repayment challenges, hurdles for distressed borrowers, and the economic incentives that may affect the quality of service. The CFPB is also re-launching an enhanced version […]

We thought last year was a busy year in the student loan world (and it was) but this year was even busier.  As The Institute for College Access and Success  (TICAS)  and others have reported, student debt burdens continue to increase.  The Obama Administration announced a commitment this year to expand options for borrowers and to […]

The Wall Street Journal reported last week on the Consumer Financial Protection Bureau’s focus on problems in the student loan market.  The article highlighted the work of Rohit Chopra, “the nation’s student-loan watchdog.” Apparently, Mr. Chopra’s work is not “sitting well with the industry.” This is a good sign for borrowers that the CFPB is […]

Senator Harkin released draft proposals for Higher Education Act reauthorization in June.   As part of this process, Senator Harkin created an email address to receive feedback by August 29.  This was intended to facilitate the submisssion of feedback and suggestions from “interested stakeholders.” Over the next month or so, we will be highlighting ideas […]

We wrote an open letter last year to private student lenders urging them to stop making excuses and start helping borrowers.   Unfortunately, not much has changed. There have been improvements for newer borrowers. Most new private loan products are better, but let’s not get carried away congratulating the lenders.  The predatory loans they made […]

The Consumer Financial Protection Bureau (CFPB) issued a rule this week that will allow the Bureau to supervise certain nonbank student loan servicers for the first time.  This important move should invigorate oversight of student loan servicing.  The CFPB’s supervisory authority covers any nonbank student loan servicer that handles more than one million borrower accounts.  This […]

The Consumer Financial Protection Bureau’s (CFPB) annual ombudsman report focuses on the problems many borrowers face trying to repay private student loans.  We applaud the CFPB report, especially since it is so difficult for borrowers to get relief from burdensome private student loan debt.  The agency also issued an advisory to help borrowers pay off […]