Take Action: No Sallie Mae Oversight in Senate Bill?
The financial reform bill pending in the Senate does not give the new Consumer Financial Protection Bureau full authority over all private student loans. In fact, the new bureau may not even have enforcement authority over Sallie Mae, the largest private student lender.
The House-passed version of the bill would give the new consumer protection entity full oversight over all private student loans. The House bill would also require lenders to confirm with the school that the student is eligible to borrow the requested amount and has been notified of any untapped federal loan eligibility. This gives schools a critical opportunity to counsel students before they take out a private loan.
Please urge your Senators to give the consumer protection bureau full authority over all private student loans to help make sure they are only used as a last resort, when absolutely necessary.
(This message was sent to the Project on Student Debt mailing list on April 26, 2010.)