Similar to the changes already enacted in the mortgage industry, the Consumer Financial Protection Bureau is pushing policymakers for an overhaul of the disclosure requirements and modifications programs of private student loan servicers.
The CFPB said that student loan borrowers seeking to pay off or reduce their loan coasts are being duped into higher fees and longer repayment periods. In a report issued Wednesday, the CFPB said servicers should be required to issue more transparent and timely disclosures.
"Repaying a student loan should be simple," said CFPB Director Richard Cordray in a press release. "When servicers process payments to maximize fees and penalties, they undermine the trust of their customers. Student loan borrowers deserve better; they deserve transparency and accountability."
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