June 02, 2014

NAFCU eyes student loan servicing, debt hearings

June 3, 2014 – NAFCU lobbyists tomorrow will closely monitor hearings held by a Senate Banking subcommittee and the Senate Budget Committee on student loan servicing and student loan debt, with the latter hearing including testimony from CFPB.

The Senate Budget Committee on Wednesday will hold a hearing addressing student loan debt titled "The Impact of Student Loan Debt on Borrowers and the Economy." The committee will hear from CFPB's Student Loan Ombudsman Rohit Chopra, among other witnesses.

Last year, CFPB launched an inquiry about card-based financial products offered to college students on campus, including products offered by federally regulated financial institutions such as credit unions. NAFCU submitted a comment letter to the bureau explaining credit unions' offerings of member-tailored products, financial resources and responsible financial education for college-aged members.

Also tomorrow, the Senate Banking Subcommittee on Financial Institutions and Consumer Protection will hold a hearing titled "Student Loan Servicing: The Borrower's Experience." Witnesses include representatives from Denison University, Student Veterans of America and a teacher from Wilson High School, on behalf of the American Federation of Teachers and Washington Teachers Union.

In an executive session today, the Senate Banking Committee will consider S. 2244, the "Terrorism Risk Insurance Program Reauthorization Act of 2014." The hearing begins at 10 a.m. Eastern.