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Episode 7 – Financial Consumer Rights Talk – Student Loan Stress

Adam Deutsch, Esq.

Adam Deutsch, Esq.

Episode 7 – Financial Consumer Rights Talk – Student Loan Stress

The CFPB whats to hear about how student loans have caused stress.

On March 10, 2015 President Obama released a press statement and a directive for a couple of the federal agencies to take action; the memo is called the “Student Aid Bill of Rights”.

This memo asks the Secretary of Education, Secretary of Treasury, and the Director of the CFPB (Consumer Protection Finance Bureau), to issue a report to the president that would assess the potential applicability of consumer protections that have been implemented in the mortgage and credit card markets to the student loan industry.

40 million people are impacted by student loans

Google search comparison reflecting interest over time to the topic of student loans compared to mortgage loans.

The president asked for recommendations for statutory or regulatory changes in the area, including where appropriate strong servicing standards could be applicable. That of course, is the servicing of student loan accounts. Why is this so particularly important? Because right now, student loan debt in the United States is the largest segment of unsecured debt.


Tell us about your student debt stress

BY  May 14, 2015,  from the CFPB.gov website

If you are paying back student loans, you are not alone. Over 40 million Americans are repaying more than $1.2 trillion in outstanding student loan debt. Significant debt can have a domino effect on the major choices you make in your life: whether to take a particular job, whether to move, whether to buy a home, even whether to get married. For many of you, student debt stress makes these big milestones seem out of reach.

#StudentDebtStress

We’ve heard that some student loan servicers (the company that sends you a bill each month) may be adding to that stress. We’re seeking information from the public about the student loan servicing practices that may make it harder to get ahead of your debt.

We want to hear from you about your experience with your student loan servicer. If you’ve run into roadblocks, tell us about it – for example, we want to know if you’ve had payment processing problems, servicing transfer snags, communication confusion, or any other challenges when repaying your student debt.

Simply click this link to send us an email, which will be included in the public record. Please don’t include sensitive information like account numbers and social security numbers. We’re accepting comments through July 13.”

Serious delinquencies on student loan debt is 11.32% according to The Federal Reserve. And serious delinquencies are rising rapidly in 2014.

Serious delinquencies on student loan debt is 11.32% according to The Federal Reserve. And serious delinquencies are rising rapidly in 2014.


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Presidential memo calling for student loan bill of rights.
https://www.whitehouse.gov/the-press-office/2015/03/10/presidential-memorandum-student-aid-bill-rights/

CFPB instructions on how to submit your story.
http://www.consumerfinance.gov/blog/tell-us-about-your-student-debt-stress/

CFPB Request for Information on Student Loans
http://files.consumerfinance.gov/f/201505_cfpb-rfi-student-loan-servicing.pdf

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Adam Deutsch

Adam Deutsch

Senior Associate Attorney at Denbeaux and Denbeaux
ADAM DEUTSCH is a Senior Associate Attorney at Denbeaux & Denbeaux currently concentrating his practice on consumer rights litigation. More specifically, Mr. Deutsch represents consumer debtors in plaintiff suits seeking relief under federal statutes including the Fair Debt Collection Practices Act, Real Estate Settlement Procedures Act, Truth in Lending Act, Fair Credit Reporting Act and state statutes such as the New Jersey Consumer Fraud Act.