Richard Cordray, Director of the Consumer Financial Protection Bureau (“CFPB”) recently presented a new tool for students seeking to finance education costs.
The CFPB has targeted student lending as a regulatory priority, which is second only to mortgages in the rankings of debt categories. Mr. Cordray offered his prepared remarks at the Boulder Summer Conference on Consumer Financial Decision Making in Boulder, Colorado, and he pointed to the inability of many students to engage in larger purchases because of lower post-college incomes and increased loan burdens.
Mr. Cordray highlighted the CFPB’s development of “Know Before You Owe” tools that are applicable to student lending and helping high school students understand education debt. He explained that in partnership with the Department of Education, the CFPB has developed the “Financial Aid Shopping Sheet,” “which gives college-bound students hard numbers in a common-sense format. This form presents a model of what all financial aid award letters should look like and provides a uniform way to inform potential students of their true college costs – before they commit to a school.”
If your institution has questions regarding student lending compliance and/or use of CFPB resources on this topic, please contact Spilman or other knowledgeable counsel.