Alert December 10, 2013

CFPB Seeks Information from Private Student Loan Servicers

The CFPB announced that it is soliciting information from private student loan servicers on the options available to borrowers seeking to make extra payments on their student loans. Specifically, the CFPB is seeking input from private student loan servicers on five questions, including: (1) the interplay between active-duty servicemembers’ loan repayment assistance programs and the servicers’ collections of such payments; (2) online bill payment systems; (3) direct debits initiated through servicers’ online servicing platforms (e.g., the percentage of payments made through a direct debit); (4) accommodations for borrowers who provide standing instructions on directing future payments in excess of the amount due; and (5) information on communicating policies to borrowers on directing payments toward a specific loan.  Responses to the CFPB’s inquiry are due by December 17, 2013.