Senate Banking Urges Regulators to Examine Student Loan Market
In December, Senator Tim Johnson (D – SD), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, sent letters to key regulators asking for “coordinated action” to examine the student loan market and address its shortcomings. Senator Johnson sent letters to Director Richard Cordry of the Consumer Financial Protection Bureau (CFPB), Secretary Arne Duncan, of the Department of Education, and Secretary Jack Lew of the Treasury Department.
In the letter, Senator Johnson calls for a “serious study,” as well as a specific examination of the “market for refinancing student loans.” Senator Johnson also calls for reforms in enhancing transparency in disclosures, the private student loan market, credit reporting and the releasing of co-signers.
It is unclear how impactful the letters will be. Neither Senator Johnson nor a Democrat will lead the Senate Banking Committee in the new year. Notwithstanding, Senator Johnson’s remarks should leave a legacy for fellow committee members, the media and the Obama Administration to further consider issues in the student loan market.
- Johnson Letter: http://www.banking.senate.gov/public/_files/StudentLoansLettertoLew20141217.pdf
- Senate Banking Committee Press Release: http://www.banking.senate.gov/public/index.cfm?FuseAction=Newsroom.PressReleases&ContentRecord_id=ac031b4e-b180-7d8c-5d25-168edf3e42a2&Region_id=&Issue_id=