Newsroom
August 24, 2014
Senate Banking eyes student loan debt
Aug. 4, 2014 – The Senate Banking Committee Thursday held a hearing on the effect of rising student loan debt on borrowers and the broader economy, during which lawmakers particularly focused on how to handle bankruptcy and other obstacles for borrowers.
The committee heard testimony from representatives of the Center for American Progress, the U.S. Public Interest Research Group, the Sound Dakota Association of Student Financial Aid Administrators and the Consumer Bankers Association.
Democratic lawmakers emphasized the need for private student lenders to offer flexible repayment options to borrowers experiencing hardship, and for private student debt to be dischargeable in the case of bankruptcy.
In his opening remarks, Chairman Tim Johnson, D-S.D., said, "While the level of student loan debt is significant, equally significant are the level of delinquencies and the options for borrowers in repayment. Recent data shows that nearly one-third of borrowers are delinquent and borrowers are entering delinquency faster than before the financial crisis. The CFPB has found that borrowers are unable to obtain affordable repayment options and have difficulty working with student loan servicers to correct payment errors."
Lawmakers also cited the website "Know Before You Owe," a CFPB initiative to create a financial aid shopping sheet to allow students to see what grants and loans they might qualify for, and to more easily compare their options. More than 2,000 colleges and universities have adopted the fact sheet.
NAFCU, which is monitoring the student loan debate, maintains that credit unions serve as the gold standard for student loan servicing. The association remains opposed to any move that would allow student loans to be discharged through the bankruptcy process.
The committee heard testimony from representatives of the Center for American Progress, the U.S. Public Interest Research Group, the Sound Dakota Association of Student Financial Aid Administrators and the Consumer Bankers Association.
Democratic lawmakers emphasized the need for private student lenders to offer flexible repayment options to borrowers experiencing hardship, and for private student debt to be dischargeable in the case of bankruptcy.
In his opening remarks, Chairman Tim Johnson, D-S.D., said, "While the level of student loan debt is significant, equally significant are the level of delinquencies and the options for borrowers in repayment. Recent data shows that nearly one-third of borrowers are delinquent and borrowers are entering delinquency faster than before the financial crisis. The CFPB has found that borrowers are unable to obtain affordable repayment options and have difficulty working with student loan servicers to correct payment errors."
Lawmakers also cited the website "Know Before You Owe," a CFPB initiative to create a financial aid shopping sheet to allow students to see what grants and loans they might qualify for, and to more easily compare their options. More than 2,000 colleges and universities have adopted the fact sheet.
NAFCU, which is monitoring the student loan debate, maintains that credit unions serve as the gold standard for student loan servicing. The association remains opposed to any move that would allow student loans to be discharged through the bankruptcy process.
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
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
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.