CFPB Trains Crosshairs On Nonbank Student Loan Servicers

Law360, New York (March 14, 2013, 5:53 PM EDT) -- The Consumer Financial Protection Bureau moved to expand its oversight of the student loan market Thursday, proposing a rule that would allow it to supervise large, nonbank student loan servicers.

Under the proposed rule, any nonbank student loan servicer that handles more than 1 million borrower accounts would be subject to CFPB oversight. The agency estimates that it would cover the seven largest student loan servicers, which service a combined 49 million federal and private student loans.

But Sallie Mae, the largest private student lender, may...
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