The Consumer Financial Protection Bureau (CFPB) is a federal new agency designed to look after the interests of consumers in all walks of life. CFPB has a strong student loan focus, and they recently announced that they will be taking complaints from consumers about private student loans. This is fantastic news. While there are several programs to help borrowers manage federal student loan problems, private student loans are uniquely problematicand there aren’t any real institutional structures in place to assist borrowers with private student loan issues. CFPB will investigate your problem and will try to work with your private lender to reach a solution.
While the new complaint system is unlikely to result in any immediate change to the private student loan sphere, CFPB will act as a central clearinghouse for private student loan issues and will hopefully play a major future role in regulating private student loans in the future.