Alert March 05, 2013

CFPB Seeks Information on Initiative to Promote Student Loan Affordability

The CFPB announced that it is gathering information to develop options for policymakers to make private student loan repayment more manageable for struggling borrowers. The CFPB Student Loan Ombudsman previously released a report noting that student loan consumers were having limited success negotiating repayment plans with private lenders (see October 16, 2012 Alert). The CFPB is looking for ways that private student loan borrowers can have more flexible repayment options. The request asks specific questions on issues such as: (1) the scope of borrower hardship; (2) current options for borrowers with hardship; (3) past and existing loan modification programs for other types of debt; (4) servicing infrastructure; (5) consumer reporting and credit scoring; and (6) spillovers (e.g., how student loan payments impact access to mortgage credit). Comments must be received by April 8, 2013.