The Consumer Financial Protection Bureau is seeking public comment on the most beneficial ways for Congress and regulators to step in and aid distressed student loan borrowers.
"The agency and others have been increasingly concerned in recent years that the $1 trillion in outstanding student loan debt is setting up the next potential financial crisis, noting similarities between student loans and mortgages. Private student loans make up about 15% of the overall debt outstanding," writes American Banker's Rachel Witkowski.
"Too many private student loan borrowers are struggling with unwieldy debt that prevents them from climbing the economic ladder," said CFPB Director Richard Cordray.
The CFPB released a formal request for the public to provide information regarding the impact of student debt on the economy. Comments can be submitted through the agency's website until April 8.
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