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Statement on Long Overdue Commitments on Student Loan Servicing Reform

FOR IMMEDIATE RELEASE:
September 29, 2015
Contacts: Colin Seeberger, colin.seeberger@younginvincibles.org214.223.2913; Sarah Schultz, sarah.schultz@younginvincibles.org202.654.6501

Young Invincibles Hails Long Overdue Commitments on Student Loan Servicing Reform
[WASHINGTON] — The Consumer Financial Protection Bureau (CFPB), the U.S. Department of Education, and the U.S. Department of the Treasury have released a Joint Statement of Principles on Student Loan Servicing to strengthen student loans by increasing consistency, accuracy, accountability, and transparency in servicing. The CFPB also released an analysis of complaints relating to servicing, finding roadblocks, sloppy practices, and the need for comprehensive, widespread reforms to servicing.

Jennifer Wang, policy director of Young Invincibles, released the following statement about today’s announcement:

“The Administration’s joint statement of principles is long overdue and welcome news to borrowers trying to repay their debt. We have recommended for some time that the Administration consider implementing new servicing protections for borrowers and urged it to address major problems in the student loan servicing market to prevent student loan default.”

“Creating effective loan servicing notification and loan transfer standards can improve the repayment process for roughly 40 million student borrowers. We are thrilled the Administration has committed to moving forward on their plans to improve servicing. We are also appalled, but not shocked, by the findings of the Consumer Financial Protection Bureau on servicer failure. These findings echo what we commonly hear from aggrieved borrowers. We look forward to seeing the results of the Administration’s efforts to improve student loan servicing and hope they will continue to make changes that will ease the repayment process.”

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