WASHINGTON – The new Consumer Financial Protection Bureau said yesterday it is beginning to survey private student lenders, a rapidly growing industry since the termination of the federally guaranteed student loan program last year.
The agency said in a release that "too little is known" about college student loans made by private lenders as opposed to those that go through programs run by the government.
"It has been operating in the shadows for too long," Raj Date, the Treasury Department adviser who is running the new regulator, said. "Shedding light on this industry will benefit students, lenders, and the market as a whole."
On Wednesday the agency put out a request for information on industry practices such as loan underwriting criteria, repayment terms and what efforts are made to prevent defaults.
The agency will seek input from the public and the industry for 60 days.
Private student lenders include credit unions and giants like JPMorgan Chase, Wells Fargo and Sallie Mae, which dominate the market.
