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New Comment for CFPB Recommends Ways to Improve Student Borrower-Servicer Relations


July 14, 2015

Sarah Lovenheim,
Sarah Schultz,

(Washington) — The Consumer Financial Protection Bureau (CFPB), the U.S. Department of Education, and the U.S. Department of the Treasury are jointly working to identify initiatives to strengthen student loan servicing. Yesterday, the CFPB closed its request for public comment on the critical role of student loan servicers. Please find a statement by our legislative affairs analyst, Reid Setzer, that speaks to our public comment (attached):

“We’re glad to see the CFPB take a step to explore the challenges facing student loan borrower relations with servicers. As part of the public comment period that ended yesterday, we recommended that the CFPB consider implementing new servicing protections for borrowers and urged it to seize this moment to address major problems in the student loan servicing market, from communications to the handling of loan transfers. Ultimately, creating effective loan servicing standards can improve the repayment process for nearly 40 million student borrowers.”

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