Consumer agency cites problems with student loan servicing
WASHINGTON - The Consumer Financial Protection Bureau says borrowers are reporting widespread problems with the companies servicing their student loans.
The bureau reported Tuesday that these problems "may be contributing to student debt stress." It analyzed more than 30,000 public comments. Among the problems cited were: lost paperwork and delays in processing that could lead to missed payments and late fees.
The agency, which oversees the student loan industry, said it will consider industry-wide rules for the companies that manage student loans.
Student loans make up the nation's second-largest consumer debt market, after mortgages. More than 40 million people hold federal and private student loans totaling more than $1.2 trillion. One in 4 student loan borrowers is in default or struggling to stay current.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
News 2 Geaux: I-10 E closed to truckers in St. Charles Parish
News 2 Geaux: DCFS reports busy DSNAP phone lines
Funding for Bayou Manchac project to be introduced to Metro Council Wednesday
News 2 Geaux: One injured in Superdome roof fire
After summer of rescues and drownings, Livingston Parish outlines ordinance for river...