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:
Publication Date: 7/14/2015