The Consumer Financial Protection Bureau issued a letter to student loan servicers asking them to voluntarily share their payment processing policies.
Rohit Chopra, the agency's top official in charge of dealing with student loans, requests that servicers show the option they have made available to borrowers who want to make extra payments on their loans. This request follows concerns the agency raised just last month in a study that said servicers were not applying extra payments to higher-costing loans.
"We have heard from borrowers that many of them want to pay off their high interest loans, but they also told us they had to run an obstacle course to get their payments processed properly," Chopra said in an emailed statement. "We hope that by asking student loan servicers to voluntarily tell us about their payment processing policies, we can work together to ensure that borrowers understand their options in repaying their loans."
"Information provided in response to this request will support the bureau's ongoing consumer education and market analysis functions," Chopra said in the letter Tuesday.
For the full piece see "CFPB Requests Processing Information from Student Loan Servicers" (may require subscription).