NASFAA Submits Comments to CFPB on Loan Servicing Issues

By Mandy Sponholtz, Policy & Federal Relations Staff

Yesterday, NASFAA submitted comments  to the Consumer Financial Protection Bureau (CFPB) in response to a request for information regarding loan servicing issues. The CFPB asked for feedback regarding general practices in the student loan industry, applicability of consumer protections from other markets (such as credit cards and mortgages), and availability of data about student loan performance.  

Many of the comments stemmed from recommendations generated by the following NASFAA Task Forces:

The CFPB referenced President Obama’s Student Aid Bill of Rights, which provides new requirements for the Department of Education (ED) and loan servicers. While NASFAA agreed with many of the initiatives, in some cases, the directives did not go far enough to truly enhance loan servicing. In general, the comments focused on:

  • Using technology to improve loan servicing and borrower communication;
  • Standardizing servicing practices;
  • Partnering with additional agencies for default prevention; and
  • Simplifying consumer information and available repayment options.


Publication Date: 7/14/2015

Marvin S | 7/14/2015 3:27:57 PM

Well done NASFAA. Lots of good stuff here.

You must be logged in to comment on this page.

Comments Disclaimer: NASFAA welcomes and encourages readers to comment and engage in respectful conversation about the content posted here. We value thoughtful, polite, and concise comments that reflect a variety of views. Comments are not moderated by NASFAA but are reviewed periodically by staff. Users should not expect real-time responses from NASFAA. To learn more, please view NASFAA’s complete Comments Policy.
View Desktop Version