- Urge Your Senators to Confirm Richard Cordray and Let the Consumer Financial Protection Bureau Do Its Job
- Bankruptcy Relief for Private Student Loan Borrowers
- Help May Be on the Way for Private Loan Borrowers Seeking Affordable Payment Options
Urge Your Senators to Confirm Richard Cordray and Let the Consumer Financial Protection Bureau Do Its Job
President Obama has re-nominated Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB). Republicans and Democrats agree that Cordray is highly qualified, and he has been doing an excellent job as its director. Still, 43 senators have threatened to block his or anyone's nomination until the agency is dramatically weakened. The good news is that 54 senators have responded by stating strong support for Director Cordray and unequivocal opposition to weakening the CFPB. TICAS has thanked them on behalf of students and their families.
This Tuesday, March 12, 2013, the Senate Banking Committee will hold a hearing on Cordray's nomination and it is expected to vote on the nomination the next week. Please act now and urge your senator to support Richard Cordray's nomination and oppose any changes that would weaken the CFPB ability to protect students from deceptive and predatory loan practices.
House and Senate bills were recently reintroduced to restore fair treatment for private education loan borrowers in bankruptcy. We joined with more than 35 student, consumer, college, civil rights and public policy organizations in endorsing these bills. Since 2005, it has been much harder to discharge private education loans than credit cards and other similar consumer debt in bankruptcy, often leaving even the most destitute borrowers with no way out. The House and Senate bills (H.R. 532 and S. 114) would restore fairness for borrowers.
The Consumer Financial Protection Bureau (CFPB) recently announced that it's gathering information to develop options for Americans struggling with unaffordable private education debt. The CFPB heard from thousands of private loan borrowers who want to make good on their debts but are unable to refinance or negotiate an affordable repayment plan. Those who borrowed at a high interest rate often lack access to refinancing options despite historically low interest rates in the economy, even if their current credit score would qualify them for a lower fixed or variable rate if they took out a loan today. Keeping borrowers locked into high rates and high payments poses risks not only to their ability to meet basic needs, but also to retirement savings and homeownership, and to the broader economy as a result. Our recent white paper calls on the CFPB and Congress to develop a plan to make private loan borrowers' debts more manageable, and we applaud the CFPB for taking this step.
The CFPB has asked for comments and suggestions by April 8 and many are already submitting comments. We'll be submitting comments and will post them on our web site when we do.
Read more about the CFPB's request and how to submit comments: http://www.consumerfinance.gov/students/helping-borrowers-find-ways-to-stay-afloat/