"Student loan borrower stories of detours and dead-ends with their servicers bear an uncanny resemblance to problematic practices uncovered in the mortgage servicing business," said Rohit Chopra, the CFPB's student loan ombudsman, in a report to Congress
"Borrowers said they were often caught off guard by loan terms and conditions, had trouble resolving issues with their servicers and were unable to modify repayment terms, even when they could not afford to pay," reports American Banker’s Kate Davidson.
The report recommended that the Treasury Department consider applying the new standards for mortgage servicing to student loan servicers. It also suggested Congress explore ways to facilitate modifications and refinancing.
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