Newsroom
August 24, 2014
Senate Banking eyes student loan debt
Aug. 4, 2014 – The Senate Banking Committee Thursday held a hearing on the effect of rising student loan debt on borrowers and the broader economy, during which lawmakers particularly focused on how to handle bankruptcy and other obstacles for borrowers.
The committee heard testimony from representatives of the Center for American Progress, the U.S. Public Interest Research Group, the Sound Dakota Association of Student Financial Aid Administrators and the Consumer Bankers Association.
Democratic lawmakers emphasized the need for private student lenders to offer flexible repayment options to borrowers experiencing hardship, and for private student debt to be dischargeable in the case of bankruptcy.
In his opening remarks, Chairman Tim Johnson, D-S.D., said, "While the level of student loan debt is significant, equally significant are the level of delinquencies and the options for borrowers in repayment. Recent data shows that nearly one-third of borrowers are delinquent and borrowers are entering delinquency faster than before the financial crisis. The CFPB has found that borrowers are unable to obtain affordable repayment options and have difficulty working with student loan servicers to correct payment errors."
Lawmakers also cited the website "Know Before You Owe," a CFPB initiative to create a financial aid shopping sheet to allow students to see what grants and loans they might qualify for, and to more easily compare their options. More than 2,000 colleges and universities have adopted the fact sheet.
NAFCU, which is monitoring the student loan debate, maintains that credit unions serve as the gold standard for student loan servicing. The association remains opposed to any move that would allow student loans to be discharged through the bankruptcy process.
The committee heard testimony from representatives of the Center for American Progress, the U.S. Public Interest Research Group, the Sound Dakota Association of Student Financial Aid Administrators and the Consumer Bankers Association.
Democratic lawmakers emphasized the need for private student lenders to offer flexible repayment options to borrowers experiencing hardship, and for private student debt to be dischargeable in the case of bankruptcy.
In his opening remarks, Chairman Tim Johnson, D-S.D., said, "While the level of student loan debt is significant, equally significant are the level of delinquencies and the options for borrowers in repayment. Recent data shows that nearly one-third of borrowers are delinquent and borrowers are entering delinquency faster than before the financial crisis. The CFPB has found that borrowers are unable to obtain affordable repayment options and have difficulty working with student loan servicers to correct payment errors."
Lawmakers also cited the website "Know Before You Owe," a CFPB initiative to create a financial aid shopping sheet to allow students to see what grants and loans they might qualify for, and to more easily compare their options. More than 2,000 colleges and universities have adopted the fact sheet.
NAFCU, which is monitoring the student loan debate, maintains that credit unions serve as the gold standard for student loan servicing. The association remains opposed to any move that would allow student loans to be discharged through the bankruptcy process.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.