- CBA on
- CBA Media
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.
- August 22, 2016On Monday, August 22, 2016, the CFPB entered into a consent order with Wells Fargo Bank for private student loan servicing practices which allegedly increased costs and penalized certain student loan borrowers. The Bureau identified breakdowns throughout Wells Fargo’s servicing process including failing to provide important payment information to consumers, charging consumers unnecessary fees,...August 1, 2016August 1, 2016 Mr. Jean-Didier Giana U.S. Department of Education 400 Maryland Avenue, SW Room 6W232B Washington, DC 20202 Submitted via email to www.regulations.gov RE: Docket ID ED-2015-OPE-0103 Dear Mr. Giana: As the trade associations representing the majority of student loan providers (guaranty agencies, lenders and servicers) in the Federal Family Education Loan (FFEL) program, we thank you...July 20, 2016On Wednesday, July 20, 2016, the U.S. Department of Education, joined by the CFPB and U.S. Department of Treasury, held a press call announcing new guidelines to encourage greater transparency and accountability in federal student loan servicing. Outlined in a 56-page memorandum , the policy direction gives five specific areas in which the agencies will focus their efforts: economic incentives;...July 15, 2016Washington, D.C. (July 15, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today released the following statement after Rep. Hultgren (R-IL) introduced the Transparency in Student Lending Act, H.R. 5838. “Empowering federal student loan borrowers with the information necessary to make sound financial decisions is a commonsense proposal that should receive...July 15, 2016Bank’s Q2 Earnings Reports Kicking off second quarter earnings reports, JP Morgan Chase sprinted out of the gate by posting a profit of $1.55 per share, compared to an estimated $1.43 per share. Following suit, Citi reported profits of $1.24 per share, compared to an estimated $1.10 per share. Rounding out the week, Wells Fargo held steady with earnings of $1.01 per share. We look forward to...July 12, 2016July 12, 2016 The Honorable Richard Shelby The Honorable Sherrod Brown Chairman Ranking Member Banking, Housing & Urban Affairs Committee Banking, Housing & Urban Affairs Committee U.S. Senate U.S. Senate Washington, D.C. 20510 Washington, D.C. 20510 The Honorable Lamar Alexander The Honorable Patty Murray Chairman Ranking Member Health, Education, Labor & Pensions Committee Health,...July 11, 2016On Monday, July 11, 2016, the U.S. House of Representatives passed H.R. 3179, the Empowering Students Through Enhanced Financial Counseling Act, by voice vote. The legislation increases the borrower counseling required prior to federal loan disbursement and repayment. The legislation also requirements that Direct Stafford and Grad PLUS loan borrowers be given “an explanation that Federal student...July 8, 2016Same-Day Paychecks According to a report from the New York Times this week, a growing number of employers are testing ways to provide their employees with faster access to their paychecks for a fee ranging from $0.50 to $5. Given the Federal Reserve’s recent report that nearly half the country cannot afford a $400 emergency expense, we certainly welcome these kinds of innovations. Additionally,...June 24, 2016Taking Our Message to Capitol Hill It is always great to have our members visit us at CBA HQ in Washington, D.C. This week, our Board of Directors and Mid-Tier Retail Executives came to town for their respective meetings and to visit the Hill. Our teams met with more than 20 lawmakers and their staffs, including House Speaker Paul Ryan, to share all the great work our members are doing on behalf...June 10, 2016June 10, 2016 Monica Jackson Office of the Executive Secretary Bureau of Consumer Financial Protection 1700 G Street, NW Washington, DC 20552 Re: Request for Information Regarding Student Loan Borrower Communications; Docket No. CFPB-2016-0018 Dear Ms. Jackson, The Consumer Bankers Association (CBA) is pleased to have the opportunity to comment on the Payback Playbook examples provided by the...