Wall Street Reform in the Senate Takes Steps to Rein in Private Student Lending

WASHINGTON—(ENEWSPF)–May 25 – Statement from Chris Lindstrom, U.S. PIRG Higher Education Program Director.

“On Friday, May 20, the Senate passed S. 3217, the Restoring American Financial Stability Act.  The bill creates a Consumer Financial Protection Bureau (CFPB) to protect consumers of financial products, including private student loans.

“As states cut college budgets and college costs rise, students are relying on private loans to help defray costs.  Private student loans are aggressively marketed, and carry risky terms and high interest.  Components of the Senate bill that will address the problem include CFPB regulatory authority over all private student loans and the creation of a Private Student Loan Ombudsman for private student loan borrowers.

“We look forward to working with both Senate and House leadership to further strengthen the Wall Street reform legislation to provide comprehensive consumer protection for private student loan borrowers in the final version of the legislation.”

“To read more about the effort to ensure that the consumer watchdog agency can adequately rein in private student loans, visit U.S. PIRG’s website.”

Source: uspirg.org