CFPB releases Student Lending Examination Procedures

The Consumer Financial Protection Bureau (CFPB) announced today that it has released an extension to its General Supervision and Examination Manual that will serve as a field guide for CFPB examiners to ensure large banks and nonbanks that make private student loans have the “appropriate processes in place to prevent harm to borrowers,” according to a press release from the bureau. The Student Lending Examination Procedures will verify that these institutions are doing the following with regard to student loans:

  • Using accurate, non-discriminatory advertising or marketing
  • Making appropriate disclosures regarding loan costs and terms
  • Providing borrowers with accurate account information such as monthly payment requirements, charges, fees and interest rate changes
  • Using adequate procedures to handle borrower inquiries and complaints.

The bureau also announced the availability of the following new consumer tools:

  • Guides for students and families shopping for student loans and managing money while in college
  • A comparison tool to help students and their families compare financial aid offers from multiple schools
  • A new web tool to help student loan borrowers navigate their repayment options.

For more, read the full press release and the Student Lending Examination Procedures.

Consumer Financial Protection Bureau, Federal Regulatory