Student Lenders Are Pressed to Ease Terms

July 26, 2013
Wall Street Journal  
student loan news

Companies that make student loans are coming under new pressure from regulators to lower payments for borrowers who are unemployed or face other hardships. The Federal Deposit Insurance Corp., Federal Reserve, and Office of the Comptroller of the Currency on July 25 urged private student lenders to ease the burden on borrowers by offering more flexible repayment terms -- such as postponing payments, lowering interest rates, and allowing lower payments over a longer term. "As with other consumer lending activities, the agencies encourage financial institutions to consider prudent workout arrangements that increase the potential for financially stressed borrowers to repay private student loans," the regulators said in a joint statement.
Web Link -
May Require Paid Subscription 







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`