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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.
- May 26, 2016May 26, 2016 Senator Mark Kirk U.S. Senate 524 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Kirk: On behalf of the Consumer Bankers Association (CBA), I write to express my support for The 401(Kids) Education Savings Account Modernization Act of 2016 (S. 2471). CBA is the voice of the retail banking industry whose products and services provide access to credit for consumers and...
- May 13, 2016On Tuesday, May 10, 2016, the OCC issued a new “Student Lending booklet ” of the Comptroller’s Handbook , prepared for use by OCC examiners in connection with their examination and supervision of national banks and federal savings associations engaged in private student lending. This booklet addressed the risks in private student lending by banks and in regulatory expectations for safe and sound...May 6, 2016Spurred by ongoing reports of skyrocketing levels of student debt, and informed by a recent crackdown on student debt relief scams, the Consumer Financial Protection Bureau unveiled a new template designed to explain debt repayment options to borrowers. However, it met with distinct coolness from the Consumer Bankers Association, which claims in a statement that it does not address the “root...April 28, 2016Washington, D.C. (April 28, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) unveiling of the student loan Payback Playbook. “While we welcome the Obama administration’s efforts to help students better understand their payment obligations, we are disappointed the...April 28, 2016On Thursday, April 28, 2016, the CFPB released its student loan Payback Playbook , a set of prototype disclosures designed to outline a path to affordable payments for borrowers trying to avoid student debt distress. The Payback Playbook provides borrowers with personalized information about their repayment options from loan servicers so they can secure a monthly payment they can afford. The...March 30, 2016On Wednesday, March 30, 2016, the CFPB issued a consent order to stop a student loan debt relief scam which allegedly tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers it was affiliated with the U.S. Department of Education. The CFPB ordered the company, Student Aid Institute, Inc., and its CEO, Steven Lamont, to pay a penalty, halt debt relief services...March 18, 2016Leadership Unplugged and Wearing Denim I wish we all were still in Phoenix wearing our jeans! CBA LIVE, once again, featured a sold-out exhibit hall, record attendance and an outpouring of social media engagement. If you missed a session, be sure to view #CBALIVE . With hundreds of tweets, you’ll be able to relive many key moments from Leadership Unplugged. Thank you to our attendees, sponsors...March 17, 2016On Thursday, March 17, 2016, Senators Bernie Sanders (I-VT), Patty Murray (D-WA), and Dick Durbin (D-IL) introduced legislation to expand Servicemembers Civil Relief Act (SCRA) protections. Specifically, the bill would lower the cap on all loan interest rates to three percent for those on active duty. If servicemembers are eligible for hostile fire or imminent danger pay, no interest will be...March 17, 2016On Tuesday, March 15, 2016, the CFPB requested a federal district court enter a final judgment and order the shutdown of Student Loan Processing.US, a student debt relief operation. The company allegedly charged customers millions of dollars in illegal upfront fees for federal student loan services. If the proposed consent judgment is entered by the court, Student Loan Processing must close...March 9, 2016A federal consumer advocacy agency is asking private student loan companies to stop using some confusing fine print to deceive borrowers. The Consumer Financial Protection Bureau (CFPB) on Tuesday challenged lenders who are “auto-defaulting,” demanding immediate and full repayment of a loan if a co-signer dies or files for bankruptcy, even when the loan is current and being paid on time. This...