The CFPB has created a student loan infographic to highlight the state of student loans in the pandemic. Among the statistics included in the infographic is that, based on Department of Education data current as of September 2020, 87% of federal student loan borrowers had their federal student loans in administrative forbearance.
The CFPB published its graphic on the heels of a memorandum released by a group of think tanks and student loan borrower and financial aid administration interest groups which makes recommendations for transitioning federal student loan borrowers back into repayment after administrative forbearance ends (currently scheduled to expire after September 30, 2021). Noting that borrowers may “fall through the cracks and into delinquency and default,” the groups recommend that the Department of Education (ED) and its office of Federal Student Aid (FSA) do the following:
Given that many servicers have offered forbearance options to borrowers of privately-held FFELP loans and private student loans that mirror those granted to federal student loan borrowers, we expect a similar focus on the above issues across the student loan servicing industry generally. Additionally, we expect that advocacy groups and regulators will continue to focus on servicers’ credit reporting practices during the pandemic (see, for example, NCLC’s letter to the CFPB requesting that it rescind guidance allowing CRAs and furnishers to exceed FCRA deadlines for disputes).