The CFPB Announces Public Comment Period for Student Loans

The CFPB Announces Public Comment Period for Student Loans

by Troutman Sanders CFPB Team

On November 16, 2011, the Consumer Financial Protection Bureau (CFPB) announced the next step in its student loan initiative with its Notice and Request for Information Regarding Private Education Loans and Private Educational Lenders. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is charged with conducting a study of and writing a report to Congress regarding the private student loan market.  The CFPB calls this market, which is defined as excluding federal loan programs, as one of the "least understood credit markets."

The CFPB is soliciting public comment on the issues Congress charged the CFPB to study.   In broad brush, the CFPB is seeking information on "how the private student loan market functions (or doesn't), how and why you got a private loan, and how it is (or is not) working for you."  The CFPB plans to issue its report by summer. 

Given that the consequence of this process can be Congressional action and further CFPB initiatives using its existing regulatory authority, participants in this market should be aware of the scrutiny and the possibility for significant changes ahead.

Authored by Alan D. Wingfield, Virginia B. Flynn

Read more at Consumer Financial Protection Bureau Report by Troutman Sanders LLP. 

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