The Consumer Financial Protection Bureau (CFPB) is seeking comments on consumer decision-making when repaying student loans, and CUNA is requesting feedback as it creates its own comment letter on the matter. Comments are due to CUNA by May 23, and to the CFPB by June 12.
The CFPB issued a request for information on decision-making when repaying student loans, including the presentation of information about alternative repayment options for federal loans.
In the coming months, the Department of Education(DOE), in consultation with the CFPB, plans to finalize new disclosures related to repayment options for federal student loans. Since this request does not address private student loans, its application to credit unions is currently limited.
However, the CFPB and DOE’saction on federal student loans could inform future activity on private loans.
Specifically, the bureau seeks feedback on a series of potential borrower communications, titled “Student Loan Payback Playbooks.” These would be developed by the CFPB in coordination with the DOE and the Department of the Treasury.
The CFPB is requesting input on how these playbooks could affect borrowers when evaluating available alternative repayment plans and facilitate enrollment in alternative repayment plans, when appropriate.
According to the CFPB, the input will be used to assist policymakers and market participants when considering potential options to enhance, supplement, or revise written communications made to student loan borrowers by student loan servicers, related to repayment options.
The CFPB is inviting comments about how these communications could reduce defaults, improve borrower outcomes and spur facilitate enrollment in alternative repayment plans, when appropriate.