After receiving thousands of complaints from consumers, the Consumer Financial Protection Bureau is encouraging private student lenders and the government to help lower payments for borrowers.
The CFPB, created under the 2010 Dodd-Frank reform law, said in a report released Wednesday that student lenders should consider lowering payments for performing and struggling borrowers. In addition, the government should push student lenders to offer such refinancing.
The agency warns that the level of student loan debt is unsustainable, and poses a potential systemic threat.
CFPB Director Richard Cordray said the agency is concerned that the "unmanageable student loan debt may be harmful to recovering consumer markets and may be dragging down borrowers' lives."
For the full piece see "CFPB Calls for Payment Reductions on Student Loans" (may require subscription).