Update: On September 29, 2022, the Consumer Financial Protection Bureau issued Supervisory Highlights Student Loan Servicing Special Edition, finding that blanket college and university policies of withholding transcripts from students ‘in connection with an extension of credit are abusive under the Consumer Financial Protection Act.’ Institutional lenders were directed to cease the practice.
The Department of Education in July proposed regulations to eliminate most instances of interest capitalization for federal student loan holders with direct loans from the government. The changes represent an important step to slow balance growth and create a fairer repayment system for borrowers by addressing interest capitalization.
As borrowers wait to apply for student loan forgiveness, several debt servicers have used the opportunity since the cancellation announcement to tout private loan refinance options.
Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) published a report on terms and fees associated with banking products marketed in partnership with colleges to students. The report raises questions about whether some marketing deals between colleges and financial institutions comply with Department of Education rules. The report also highlights a lack of transparency in the arrangements schools have made with financial institutions.
The National Credit Union Foundation (the Foundation) has committed up to $225,000 from its CUAid program in response to the catastrophic destruction left by Hurricane Ian.
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