CFPB report: More struggles for student-loan borrowers
CFPB on Wednesday released its annual report on student loan complaints, which found that federal student loans made by private lenders "may have a higher concentration of borrowers in default or delinquency than the student loan market at-large."
The Annual Report of the CFPB Student Loan Ombudsman also noted:
- borrowers with federal loans made by private lenders say they run into roadblocks when attempting to access income-driven repayment plans;
- more than one in five of these borrowers are not making payments or are past due, but not yet in default; and
- 95 percent of these borrowers are not enrolled in any kind of repayment plan.
The report also noted that more information is needed about the entire student loan market, "including more details about delinquencies, defaults, and how borrowers in income-driven payment plans fare over time," said a CFPB blog post on the report.
Last month, CFPB published a report outlining servicing failures reported by federal and private student loan borrowers. CFPB Director Richard Cordray noted that one in four student loan borrowers struggles to repay or is 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 told CFPB in a comment letter in July that NAFCU appreciates CFPB's attention to this issue, but "premature regulations on student lenders and student loan servicers may negatively harm the ability of well-regulated credit unions to serve this important student demographic."
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Board and Governance
Add to Calendar 2023-06-06 14:00:00 2023-06-06 14:00:00 Avoiding and Resolving Harassment Claims: A Primer for Board Members The #me-too movement may have receded from the front of public consciousness, but the need to prevent and resolve harassment claims remains a key function for any employer. As community-oriented organizations, credit unions more than most feel a responsibility for the well-being of their members, employees and volunteers. This webinar, Avoiding and Resolving Harassment Claims: A Primer for Board Members provides both an introduction to the subject for board members, as well as selected deep dives on particular issues of interest to credit union volunteer boards. Key Takeaways Learn to identify the hallmarks of a situation in which it is appropriate for the board to become involved, as opposed to permitting effective resolution through normal human resources procedures Recognize the breadth of current law governing harassment claims, including newly prominent protected categories, the nature and severity of conduct which may constitute harassment, and the fact that conduct that may not rise to the level of a state or federal law civil rights violation may still violate the credit union’s own internal policies, procedures, and ideals, and be subject to appropriate discipline and remedial action Discover appropriate oversight roles for board officers, committee members including supervisory committee members, and other Board members, particularly in the context of passing along a report or complaint of harassment or inappropriate conduct Register Now$295 Members | $395 Nonmembers (Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until June 6, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Board of director titles NCVEs and volunteer titles HR titles Education Credits NCVEs will receive 1.0 CEUs for participating in this webinar Web NAFCU firstname.lastname@example.org America/New_York public
Avoiding and Resolving Harassment Claims: A Primer for Board Members
Add to Calendar 2023-06-06 09:00:00 2023-06-06 09:00:00 Fighting Fraud: The Role of Fraud Fusion Centers Listen On: Key Takeaways: [00:56] The concept of a Fraud Fusion Center is a collaboration among professional fraud fighters. Anyone that has been doing this for a while forms a network of trusted advisors and we all go to each other anytime we come across some new or complex case. [02:50] Scams have always been around but the emergence of AI has made them far more sophisticated than we have ever seen before. [05:55] Person-to-person payment apps like Zelle, Venmo, and CashApp are not protected like debit and credit cards. [08:30] Every single time that new technology comes out that makes our lives better, fraudsters will find a way to exploit it. The current state of cyber fraud points credit unions in a lose-lose situation. [20:04] By identifying the information at one credit union and getting it out to others they are getting ahead of these threats. [22:19] Fraud Fusion Centers are critical. Formalize it and make it happen. Web NAFCU email@example.com America/New_York public
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