As we continue to digest the new mortgage rules it is easy to overlook other areas of compliance, for example, private student lending. Just as with the revisions to the mortgage rules, information gathering is the CFPB’s first step on the way to making changes. To that end, the CFPB recently released a Notice and Request for Information pertaining to private student lending.
The CFPB plans to use this information to make recommendations to policymakers to help address the high number of consumers struggling to make their student loan payments. The agency is collecting information on several different topics such as:
- How distressed borrowers manage their student loan obligations;
- What options currently exist for borrowers to lower their monthly payments on private student loans;
- Examples of successful alternate payment programs in other markets and which features could apply to this market; and
- The most effective mechanisms for communicating with distressed borrowers.
The CFPB believes it is important for borrowers to have more flexible repayment options for private student loans so changes could be coming our way. Comments are due April 8, 2013.
If we have learned anything from the last 14 months it’s that it is important to comment and the earlier the better!