“The Supreme Court has a choice in its ruling: it can side with judicial precedent, historical practice, common sense, and text of the Constitution—or it can side with payday lenders and economic chaos,” said Michael Calhoun, president of the Center for Responsible Lending, one of the groups represented at the rally.
Student debt can also ripple from one generation to the next, those at the CBCF conference emphasized. That debt makes it harder to build wealth as "the disproportionate impact of student loan debt on Black borrowers…has been demonstrated to exacerbate the racial wealth gap," a study from the Center for Responsible Lending found.
HORSLEY: You know, the CFPB is popular with the public. Polls show Democrats and Republicans alike feel it's useful to have an agency that's looking out for them in their dealings with often much more sophisticated financial institutions. Over the years, the bureau has recovered some $17 billion for consumers. It's gone after not only predatory lenders, but debt collectors and student loan servicers and ordinary banks with their overdraft fees. Mike Calhoun, who heads the Center for Responsible Lending, says no agency is really immune from politics. But the bureau has proven to be pretty
"Es probable que los latinos retrasen decisiones financieras importantes, como comprar una casa, debido a sus préstamos estudiantiles, lo que en última instancia los mantiene en un ciclo de deuda", dijo David Ferreira, gerente senior de asuntos gubernamentales del Centro para Préstamos Responsables.
“Latinos are likely to delay important financial decisions, like purchasing a home, because of their student loans, which ultimately keeps them in a cycle of debt,” said David Ferreira, senior government affairs manager at the Center for Responsible Lending.
“Almost 1 in 4 borrowers were getting ready to be in default or at risk already. About 2.6 million borrowers were already in this risk factor. So what we want to make sure this on-ramp process is safe for borrowers. We don't want to widen that gap,” said Jaylon Herbin, the director of Federal Campaigns for CRL. Herbin says there are things borrowers can do to ease the stress of these payments. First, know your loan servicer because many of them changed during the pandemic. Second, confirm your balance, interest rate and monthly payment. That information is available in your online account
Jaylon Herbin, student loan lead for the Center for Responsible Lending, a nonprofit financial policy organization, said a first step for borrowers is to locate their loan servicer since many servicers have changed over the past three years. Borrowers can check by logging on to studentaid.gov. Once borrowers are logged in, Herbin said they should also make sure to check that their loan amount is correct.
“Everyone deserves to be their Flamin’ Hot self, but student loans can create a significant burden on college graduates – especially at HBCUs where students graduate with 19% more debt than those at non-HBCUs,” said Tina Mahal, senior vice president of marketing at Frito-Lay, citing Center for Responsible Lending data. “The Flamin’ Hot University scholarship fund at TSU was designed to ease some of the financial pressures student loans bring so graduates can focus on unleashing their hottest potential.”
Yet being able to put down very little on a home is “a very powerful tool to expand access to credit, if it is done responsibly,” Mitria Wilson-Spotser, vice president and federal policy director at the Center for Responsible Lending, told MarketWatch. “Most lenders actually write mortgages to the conventional mortgage standard, which is the standard that’s established by Fannie Mae and Freddie Mac, and the Federal Housing Administration,” she said. “A 1% down payment does not violate any of those requirements.“
"The harm would be profound," said Ellen Harnick of the Center for Responsible Lending, a consumer advocacy group. "The market disruption, if existing rules are called into question, would be hard to overstate. ... All of the problems that led to the creation of the CFPB would now be unattended to."