Federal Student Loan Ombuds Program Survives CFPB Reorganization
The Consumer Financial Protection Bureau’s Office of Students and Younger Consumers, which investigates student loan problems, will be folded into its financial education office according to an announcement by the CFPB Interim Director earlier this month. Student loan complaint will therefore not be investigated by the bureau’s enforcement division. Seth Frotman, the CFPB Student Loan Ombudsman, will remain as required by the establishing law: Dodd Frank. Frotman and his staff will be working on pamphlets and web content about student loans. (Consumer Report.)
Related post: ACUS Finalizes Recommendation on Use of Ombuds in Federal Agencies
What the CFPB Can and Cannot Do - At this time, the CFPB only
ReplyDeletecontains the authority to enforce existing regulations which are previously
within the power over other agencies. Anyway, without a doubt a student loan has some advantages as said, particularly, the two major advantages of a student loan over conventional loans
are: 1) Lower interest rates; 2) Easier repayment terms.
As essental to federal law, consumers who obtain a house loan receive two forms: a two-page Truth
in Lending disclosure form plus a three-page Good Faith
Estimate.