United States: CFPB Announces Review of Colleges Providing Private Loans Directly to Students
- the CFPB announced that it will begin reviewing the operations of post-secondary schools, including for-profit colleges, to review their practices in providing private loans directly to students.
- According to the CFPB, school loan programs will be reviewed to identify potential abusive practices, including placing enrollment restrictions on students who are behind on loan payments, withholding transcripts due to debt, improperly accelerating payment schedules, failure to issue repayments and maintaining poor privileged relationships with certain lenders.
- The CFPB has issued an update Student Loan Review Procedures Manual which includes a new section on institutional student loans to examine potentially abusive actions or practices these schools take against their student borrowers.
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