Alert August 06, 2013

CFPB Releases Mid-Year Report on Private Student Loans

The CFPB’s Student Loan Ombudsman released its mid-year report on private student loans. The report identifies complaints made by private student loan borrowers (e.g., loan origination or servicing). The CFPB Ombudsman noted that the report seeks to highlight issues that may be cause for particular concern—either because of the amount of related complaints received or because of the practices described by consumers. Many of the complaints received by the CFPB relate to consumer’s inability to modify the repayment terms of their loan to either lower the monthly payment or reflect the borrower’s improved credit profile and creditworthiness. The report also detailed other challenges private student loan borrowers face, including protections under the Servicemembers Civil Relief Act. This report is a follow-up to the report issued by the CFPB in October 2012 (see October 16, 2012 Alert).