CFPB Seeks Information from Private Student Loan Servicers

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The CFPB announced that it is soliciting information from private student loan servicers on the options available to borrowers seeking to make extra payments on their student loans. Specifically, the CFPB is seeking input from private student loan servicers on five questions, including: (1) the interplay between active-duty servicemembers’ loan repayment assistance programs and the servicers’ collections of such payments; (2) online bill payment systems; (3) direct debits initiated through servicers’ online servicing platforms (e.g., the percentage of payments made through a direct debit); (4) accommodations for borrowers who provide standing instructions on directing future payments in excess of the amount due; and (5) information on communicating policies to borrowers on directing payments toward a specific loan.  Responses to the CFPB’s inquiry are due by December 17, 2013.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this informational piece (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Topics:  CFPB, Loan Servicer, Student Loans

Published In: Consumer Protection Updates, Education Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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