Miller Statement on New CFPB Rule to Supervise Nonbank Student Loan Servicers
WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the senior Democrat on the House Education and the Workforce Committee, issued the following statement after the Consumer Financial Protection Bureau announced today proposed regulations to oversee nonbank student loan servicers. Under the new proposed rule, CFPB will be able to view the complete cycle of private student loan debt, from origination through servicing to debt collection and credit reporting. At a time when total student loan debt has exceeded $1 trillion, when many students are struggling to make their loan payments, and with few repayment options available for private student loan debtors to refinance, greater transparency and oversight is essential to protect our nation’s students from predatory lenders and ineffective servicers.
“I applaud the CFPB for taking this important first step in regulating the largest loan servicers and protecting the millions of borrowers that interact with these companies each year,” said Rep. Miller. “The CFPB has documented the confusion, dead ends, and runarounds borrowers experience while repaying their private student loans. This new rule will ensure that student loan servicers are not being careless and leaving students buried under a mountain of debt.”
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