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The student lending industry argues that the problems the CFPB is finding in the market are more related to federal loans than private ones and disagree with the agency's push to allow student loans to be charged off in bankruptcy.
October 16 -
The Consumer Bankers Association frequently tangles with the Consumer Financial Protection Bureau, but its new chief Tim Wennes struck a more conciliatory tone in an interview. Rules that promote transparency and consumer understanding are good, but consumer choice has to be preserved, he said.
September 11 -
The rising student loan debt is inconsistent with trends for other U.S. consumer debt categories, according to analysis by Experian.
September 9
Wells Fargo
A purchase price was not announced. The transaction supports Wells Fargo's "ongoing strategic focus on its private student-lending business" the bank said in a press release Thursday.
Wells Fargo stopped issuing loans through the Federal Family Education Loan Program in June 2010, when a law overhauling the student loan business took effect. The law prohibited the federal government from subsidizing banks to issue federally insured loans.
The loans included in the Navient sale have been serviced since 2011 by American Education Services and Xerox Education Services.
The sale will take place in a series of transactions, most of which will close this quarter.
Wells Fargo's Education Financial Services currently serves 1.3 million customers and has $11.9 billion in outstanding balances.
Wells Fargo is based in San Francisco. Navient has its headquarters in Wilmington, Del.
