For Immediate Release
Wall Street Reform in the Senate Takes Steps to Rein in Private Student Lending
Statement from Chris Lindstrom, U.S. PIRG Higher Education Program Director
WASHINGTON - “On Friday, May 20, the
Senate passed S. 3217, the Restoring American Financial Stability Act.
The bill creates a Consumer Financial Protection Bureau (CFPB) to protect
consumers of financial products, including private student loans.
“As states cut college
budgets and college costs rise, students are relying on private loans to help
defray costs. Private student loans are aggressively
marketed, and carry risky terms and high interest. Components of the
Senate bill that will address the problem include CFPB regulatory authority
over all private student loans and the creation of a Private Student Loan
Ombudsman for private student loan borrowers.
“We look forward to
working with both Senate and House leadership to further strengthen the Wall
Street reform legislation to provide comprehensive consumer protection for
private student loan borrowers in the final version of the legislation.”
“To read more about the
effort to ensure that the consumer watchdog agency can adequately rein in
private student loans, visit U.S.
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