Consumers Union, the advocacy division of Consumer Reports, appreciates the opportunity to comment on the Bureau’s request for information regarding student loan servicing practices. We applaud the Bureau’s interest in this issue, and write to share the common problems we’ve heard from consumers as well as recommendations for reform.
The time is long past due for federal regulators to take action in this area. The Bureau has broad supervisory authority over servicers of both federal and private education loans, as well as the authority to write rules to prevent unfair, deceptive and abusive practices. For these reasons, we urge the Bureau to draft new rules of the road for education loan servicing immediately.
For the full letter, click here.