With all the proposed mortgage rules coming out recently you may think that the CFPB’s only focus is mortgage lending but you would definitely be mistaken. The CFPB has also spent significant resources and time dedicated to student loans. Over the last year, the CFPB implemented a student loan complaint system, developed online tools to assist students and their families and released the “Know Before You Owe” financial aid shopping sheet. But unfortunately, there is more work to do.
Yesterday, the CFPB hosted a student loan forum. The opening remarks were made by Rohit Chopra, Student Loan Ombudsmen and one statement in particular caught my attention, “With high levels of debt and flat wages, the ability for an underwater student loan borrower to fully participate in the economy as a homeowner or small business owner becomes farther out of reach.” It sounds a bit like underwater mortgages and we all know what happened when that bubble burst. So, if you want to take your mind off of all the proposed mortgage rules for a couple of minutes, take a look at Chopra’s remarks…it’s an interesting read.