Expanding its oversight of the private student loan market, the CFPB has announced an investigation into repayment options for troubled borrowers, with particular interest in loan modification and refinance programs that are typically offered to borrowers with federal aid. The notice also makes clear that the findings of this investigation will contribute to future CFPB recommendations to other policy-makers, including the Department of Education, which could lay the groundwork for broad standards to address the systemic problems within this fast-growing credit market. Little detail, however, on what these recommendations might be or their timeline is given.
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