CFPB: Student Debt a Roadblock for Consumers, Economy

CFPB: Student Debt a Roadblock for Consumers, Economy

 On May 8, 2013, the CFPB issued a report highlighting the role that student debt increasingly plays in affecting both consumers and the broader economy.  Pursuant to a February 2013 Notice and Request for Information, the CFPB received nearly 28,000 comments concerning ways to provide affordable private student loan repayment options.  From the comments it gathered to produce the study, the CFPB determined that the burden of student debt has ripple effects throughout the broader economy that warrant the attention of policymakers.

The report's recommendations involve possible payment options for private student loan providers to consider in response to consumer concerns that could potentially mitigate the adverse economic impacts of student loan debt.  Unlike other reports from the CFPB, it is not clear that the recommendations set forth in the report lend themselves to formal regulatory action from the CFPB, nor does it provide specific recommendations for Congress or the Department of Education.  Rather, the report appears to be an aggregation of consumer concerns about student debt burdens and a consideration of the impact of student loan debt on the broader economy.

The full report is available here.

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

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