Feb. 22, 2013 – The CFPB yesterday issued a request for information that seeks ideas for offering student-loan borrowers more flexible repayment options.
The bureau is working to develop options to present to policymakers so make private student loans more manageable to struggling borrowers.
The CFPB ombudsman released a report last October that showed consumers had trouble negotiating affordable repayment plans with their lenders and servicers for private student loans. The report, sent to the CFPB director, Treasury secretary, Education secretary and Congress, recommended that policymakers explore ways to “spur the availability of alternative repayment and refinance options.
The CFPB and Education Department sent Congress a report on the private student loan market last July.
The bureau’s request for information seeks input on:
- how student loan burdens can affect the broader economy and hinder access to mortgage credit and automobile loans;
- how distressed borrowers manage their student loan obligations;
- what options exist now for borrowers to lower their monthly payments on private student loans;
- examples of successful alternative payment programs in other markets that could be adapted to the student loan market; and
- the most effective mechanisms for communicating with distressed borrowers.
Comments are due April 8.