Following up on new rules for mortgage lenders and debt collection agencies, the Consumer Financial Protection Bureau has now expanded its focus to student loans.
On Thursday, it proposed a rule today that would allow it to supervise nonbank student loan servicers, bringing new oversight to a “rapidly growing market that has seen a rise in borrower delinquency in recent years.” Any nonbank student loan servicer that handles more than 1 million borrower accounts would be subject to CFPB supervisory authority The Bureau does currently oversee student loan offerings from larger banks and the new rule would ensure that nonbanks face the same level of scrutiny.
