The Consumer Financial Protection Bureau (CFPB) has released the 36th edition of its Supervisory Highlights, focusing on significant findings in the student loan market. It highlights issues such as deceptive practices by private lenders that misled borrowers about losing federal loan benefits when refinancing, unfair denial of benefits like disability discharges, and misleading information about autopay discounts. The report also examines improper loan collection tactics and the handling of federal student loan services during the COVID-19 pandemic repayment pause, pointing out issues like long call wait times and inaccurate billing statements. The CFPB is calling for corrective actions to protect consumers and ensure fair practices.
Simple Explanation
The Consumer Financial Protection Bureau (CFPB) is telling people about some bad things happening with student loans, like private lenders not being honest about loan benefits, and making mistakes with payments during COVID-19. They want to fix these problems to help students have a fair chance with their loans.