Student Lending

CBA is the public policy voice for private-market capital to fund loans supporting America’s students. Private student loans serve important purposes, primarily to provide gap funding for undergraduates who need to pay for college. In addition, for some families and graduate students, private loans can be a sensible alternative to federal loans, especially PLUS loans. Almost 97% of private student loans are being successfully repaid. That is largely due to the high level of underwriting required to receive a private loan, as well as the use of cosigners. Nearly 70% of private student loans are made by six lenders, five of which are CBA Members.  Collectively, private loans account for just 8% of loans being made today. The other 92% are Direct Loans made by the U.S. Department of Education. 

  • March 27, 2013
    Dear Sirs: The Consumer Bankers Association (CBA) appreciates your past willingness to discuss how to assist private student loan borrowers experiencing difficulty repaying their loans. We believe it is important to work to address the challenges we are seeing in today’s economic environment. Private student loans only account for approximately 7 percent of today’s student loan originations,...
  • March 18, 2013
    Dear Ms. Jackson: The Consumer Bankers Association (CBA)1 and the American Bankers Association (ABA)2 (collectively “the Associations”) submit this letter in response to the Consumer Financial Protection Bureau’s (Bureau) Request for Information Regarding Financial Products Marketed to Students Enrolled in Institutions of Higher Education (RFI). The Associations appreciate the opportunity to...
  • March 7, 2013
    Dear Director: On December 31, 2012 the Department of Education published a notice of information collection activities associated with Preferred Lender Arrangements (Part 601). The regulations require covered educational institutions to provide a variety of new loan disclosures on private student loans. In the notice, the Department noted it is submitting the Private Education Loan Applicant...
  • February 27, 2013
    Dear Secretary Duncan, The Consumer Bankers Association (CBA) and its members are strong supporters of higher education and recognize the tremendous value a degree can provide. While a small part of the overall market, our member banks in the private student loan business stand ready to assist students and families address their higher education financing needs. As President Obama has highlighted...
  • February 22, 2013
    CFPB Consumer Advisory Board Meeting On Wednesday, February 20, 2013, the CFPB held a public meeting of the Consumer Advisory Board (CAB). The CAB is mandated by Section 1014 of the Dodd-Frank Act to advise and consult with the Bureau in the exercise of its function, and is required to meet at least twice a year. A list of the members can be found on the CFPB website . Though most of the business...

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