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.
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