6.29.21
Student loan servicers are expected to face increased supervision and accountability from the Consumer Financial Protection Bureau (CFPB). Many market observers believe Rohit Chopra will likely tighten standards on servicers once confirmed by the Senate to lead the CFPB. These student-loan-servicing regulatory reforms will aim to reduce defaults and improve borrower communication similar to requirements created for mortgage servicers after the financial crisis. Advocates and several members of Congress are urging the Biden Administration to extend the existing forbearance program, based on concerns that borrowers are not financially prepared to restart payments.