WASHINGTON–The Department of Education, the Department of the Treasury, and the CFPB have announced further actions aimed at protecting student loan borrowers. Among the steps being taken:
- Student loan borrowers’ rights and expectations: The administration, in consultation with the Bureau and informed by work with Illinois Attorney General Madigan and other state law enforcement officials, has released a series of new student loan borrower rights and expectations. “This provides a framework to help ensure borrowers with loans owned by the Department of Education are treated fairly and that the student loan repayment process sets these borrowers up to succeed,” the CFPB said. “The Bureau continues to emphasize that no consistent, market-wide federal standards exist for conduct of student loan servicers. With this framework, the agencies have taken another step toward improving the delivery of service for millions of student loan borrowers.”
- Strengthening student loan credit reporting: The administration, in consultation with the Bureau, is working with the credit reporting industry to develop guidance for servicers, lenders, and others that furnish data to the credit reporting companies. “This effort will help determine how best to report student loan data to ensure that credit reporting for student loans fairly, consistently, and accurately reflects repayment activity. The Department of Education will implement this effort in the months ahead,” the Bureau said.
Student loan borrowers can get more advice on student loan repayment options by using the CFPB’s Repay Student Debt tool. This interactive resource offers a step-by-step guide to navigate borrowers through their repayment options, especially when facing default.