National Association of Student Financial Aid Administrators (NASFAA) President Justin Draeger issued the following statement in response to the recommendations put forth by the Consumer Financial Protection Bureau's (CFPB's) report on private student loans. These recommendations will be delivered to Congress and incorporate several policies advocated by NASFAA and the National Association of College and University Business Officers (NACUBO), including:
"Financial aid administrators commend the CFPB for proposing recommendations that would help students and parents borrow responsibly and repay their loans," said NASFAA President Justin Draeger. "If enacted, these recommendations would help ensure students and parents receive counseling before borrowing private student loans, avoid confusing private loans with some federal loans, and provide them tools to better track and repay their loans. In addition, adopting these recommendations would give trapped borrowers a pathway back to prosperity for those who may find themselves trapped in a non-dischargable student loan abyss.We urge Congress to consider and enact these recommendations immediately."
Publication Date: 7/20/2012