On May 6, 2024, the CFPB resolved an enforcement action against
a group of Delaware student loan trusts and a loan servicer (found
here and here) for their failures to adequately respond
to borrowers' requests for relief, including during the
COVID-19 pandemic. When entered by the court, the stipulated final
judgments will require defendants to pay almost $3 million in
redress to borrowers, and pay a fine of $2.15 million.
The trusts acquired, pooled, and securitized student loans, and
hired a third party servicer to service them. As of February 2024,
the trusts held roughly 163,000 individual private student loans
representing approximately $907 million in student debt.
The Bureau alleged that between 2015 and 2021, defendants failed
to respond to thousands of borrower requests, often for forms of
relief such as forbearance, deferment, loan settlement or
forgiveness, Servicemember Civil Relief Act benefits, or other
types of payment or interest rate relief. The
