Consumer Finance Bureau Will Study For-Profit College Loans

The Consumer Financial Protection Bureau announced Thursday that it will begin reviewing the operations of post-secondary colleges, such as for-profit colleges, that provide private loans directly to students. As CFPB Begins Oversight, Examination Procedures Inform Industry of Practices CFPB Examiners Will Examine, Including Imposition of Enrollment Restrictions, Withholding of Transcripts, Undue Expedition of Payments , failure to issue repayments and maintaining improper loan relationships.

“Schools that offer students loans to attend their courses have a lot of power over their students’ education and financial future,” CFPB Director Rohit Chopra said. “It is time to open the books on institutional student loans to ensure that all students with private student loans are not harmed by illegal practices.”

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