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Federal Consumer-Protection Agency Tackles Private Student Loans

November 16, 2011, 2:12 pm

The Consumer Financial Protection Bureau is asking students, colleges, and lenders to share information about their experiences with private student loans. The federal agency, which has oversight over most forms of consumer lending, will use the information to prepare a report to Congress on private loans and to “prioritize its own regulatory and education work,” according to a White House news release. “The private student-loan market is one of the least-understood consumer-credit markets,” said Raj Date, a special adviser to the secretary of the treasury. “It has been operating in the shadows for too long.”

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  • katisumas

    It’s about time!

  • ldsb67

    Federal and private student loans ARE Criminal. We have seen what has happened in the mortgage crisis, and have barely held them accountable. Consumers suffered in the end.

    Education loans ARE no different. Loans are given out to people based on “more flexible credit standards” to help make education available to more than just the social elite, which it should be.

    So let me get this right, loans are knowingly given to people that will be unable, or at least have much difficulty, paying them back. Who is to blame for this? Seems to me that those knowingly handing loans out in this fraudulent manner should be responsible for repayment.

    A good example. An orphan, with no parents other than the state government, decides to pursue the right to fair education (or maybe this doesn’t include higher education-a whole new discussion). This orphan wracks up a large enough debt that it becomes a very undo burden, but is socially constructed to a lie that education will provide a better life. This struggling orphan becomes a parent with a humbling but moderate wage. The child grows up and desire to be educated, which the parent holds as a higher standard for living and has raised the child to desire higher education.

    The parent, with a debt that can never be paid back and has accumulated large amounts of compounded interest, is FORCED to take out additional loans for the child. Even though the child would like to personally take advantage of federal student loans, for access to our higher education system meant for all.

    When confronting the agency responsible, they say that “standards are more flexible” for the availability of these loans. I other words: we don’t care that your American dream is destroyed because your debt to income ratio is too high (only from student loans since there is no other debt other than housing-a basic necessity) and we know you will never, in your lifetime, be able to pay them. But we reserve the right to not only destroy your life, but continually harass you till you die.

    CRIMINAL, CRIMINAL, CRIMINAL

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