CFPB Recommends More Flexible Approach to Private Student Loan Debt

Yesterday, the Consumer Financial Protection Bureau (CFPB) proposed to create more flexible repayment plans for private student loans. These loans are $150 billion of the current $1 trillion in outstanding student loan debt. The CFPB proposes that borrowers who pay on time should be allowed to refinance at lower interest rates, whereas borrowers who default should be provided with income-based repayment plans. The CFPB urges lenders to implement those recommendations now. The CFPB also proposed that a rehabilitation program available for federal student loan debt be extended to private loans. Read more here.