CFPB’s Loan Report Attacks Lenders Rather Than Empowering Students
Career College Central Summary:
The Consumer Financial Protection Bureau’s (CFPB) recent annual student loan ombudsman report aims to help those falling behind with private lenders. However, its reactive approach would simply stifle flames rather than prevent their initial burst by proposing shortsighted policies that could lead vulnerable students to take on more debt.
CFPB Student Loan Ombudsman Rohit Chopra announced the report’s release with a dire warning: “This is something we’re taking very seriously, and we do not want to see a repeat of what happened in mortgages happen here.” The comparison is appropriate, but probably not in the way Chopra intended.
The report identifies an increase in the number of complaints filed with the CFPB related to companies offering private student loans—some 5,300 in the past year, a 38 percent increase from the previous year.
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