The Consumer Financial Protection Bureau and the Defense Department have found that "student loan servicers may be violating legal protections for military borrowers on a greater scale than was found in mortgage servicing," reports American Banker’s Kate Davidson.
"The problem may be greater with student loans than it was with mortgages because I believe many more young service members enter active duty with student loans than with mortgages," said Holly Petraeus of the CFPB.
The finding is spurring a joint initiative in which CFPB staff will “train legal assistance attorneys from all branches of the military about how to improve their support for military student borrowers,” writes Davidson.
"For all the service our military members give us, the least we can do is protect them from this kind of disservice," said CFPB Director Richard Corday in a press release.
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