Newsroom
CFPB raises concerns about student loan servicing issues
CFPB published a report Tuesday outlining servicing failures reported by federal and private student loan borrowers – the results of a joint public inquiry the bureau began in May with the Education Department and the Treasury Department.
CFPB Director Richard Cordray noted that one in four student loan borrowers struggle to repay their loans or are already in default. "Today's report underscores the need for market-wide student loan servicing reforms to halt harmful practices and boost assistance for distressed borrowers," he said.
NAFCU Regulatory Affairs Counsel Kavitha Subramanian said NAFCU and its members "firmly believe that students should have access to transparent information about a variety of safe and vital financial services, specifically student loans to pay for their education."
She continued, "While NAFCU appreciates the CFPB's attention to the unregulated actors in this space, we are concerned the proposed framework takes a one-size-fits-all approach and would not provide adequate flexibility for well-regulated credit unions to serve this important student demographic."
CFPB joined with the Education Department and Treasury Department to recommend four principles to improve student loan servicing practices, including:
- consistent standards for the student loan servicing market;
- strengthened servicer communications to give borrowers better information;
- an emphasis on accountability; and
- more oversight by federal and state regulators, with public access to data on student loan performance.
NAFCU staff will continue to review the report and analyze it for its potential effect on credit unions.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.