InfoBytes Blog

Agencies Unveil Student Loan Servicing Regulatory Framework

On September 29, the CFPB issued a report examining public comments and providing policy recommendations to address issues in the student loan servicing market. The report follows a May 2015 Request for Information notice where the CFPB, together with the Department of Treasury and the Department of Education (collectively, the Agencies), sought feedback on ways to improve student loan servicing practices.

In a parallel announcement, the Agencies released an interagency Joint Statement of Principles on Student Loan Servicing, which is expected to serve as a regulatory framework in the reformation of current student loan servicing practices, and establish minimum federal compliance requirements.

CFPB Student Lending Department of Treasury Department of Education

Department of Education Proposes Rules to Reign In Fees on Student Financial Accounts

The Department of Education is set to propose new regulations which could change how financial institutions provide services on college campuses, according to a NPRM to be published in the Federal Register on May 18. The new rules, part of a nearly 300-page “Program Integrity and Improvement” package, are intended to among other things (i) ensure that students have convenient access on their Title IV funds, (ii) do not incur unreasonable and uncommon financial account fees, and (iii) are not led to believe they must open a particular account from a financial institution to receive Federal student aid. The proposed regulations also update other provisions in the cash management regulations, clarify how previously passed coursework is treated with respect to Title IV funds eligibility, and streamline the requirements for converting clock hours to credit hours. Public comments on the proposed rulemaking will be due 45 days after date of publication in the Federal Register.

UDAAP Debit Cards Department of Education Agency Rule-Making & Guidance