CFPB Lays Down The Gauntlet On Student Loan Servicing

The CFPB and the U.S. Departments of Education and the Treasury have released a Joint Statement of Principles on Student Loan Servicing, accompanied by a CFPB report. In the CFPB's press release announcing the publications, the Bureau expressed "concern" about what it calls "widespread servicing failures reported by student loan borrowers." It vowed to "stamp[] out illegal actions" and "clean up" the $1.2 trillion student loan servicing market.

These documents go much further than the usual expression of "concern" about complaints and promises of strict enforcement, though. They create a specific, interagency framework for future student loan servicing regulation. The joint statement recommendations include: