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ARTICLE · 03 JANUARY 2025

CFPB Report Highlights Widespread Violations In Student Loan Sector

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On December 16, the CFPB released a special edition of its Supervisory Highlights, which detailed findings from the Bureau's recent examinations of student loan markets.

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On December 16, the CFPB released a special edition of its Supervisory Highlights, which detailed findings from the Bureau's recent examinations of student loan markets. The report identifies a range of violations related to student loan refinancing, private lending and servicing, debt collection, and federal loan servicing.

Notable violations identified by the Bureau include:

  • Lenders mislead borrowers and failed to follow borrowers' refinancing instructions. Refinancing federal loans with private lenders can result in borrowers losing federal protections. The Bureau found that lenders mislead consumers into believing that refinancing with them allowed the borrowers to retain access to certain protections, such as federal loan cancellation programs, when this was not the case. Lenders also failed to adjust consolidated loans following borrowers' requests to exclude federal loans.

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