Feds Urge Banks To Refinance Delinquent Student Loans

Law360, New York (July 25, 2013, 12:42 PM EDT) -- Federal regulators on Thursday urged banks to help borrowers who have run into trouble keeping up with payments to modify their outstanding private student loans.

The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency said in a joint statement that they would “not criticize” financial institutions that engage in “prudent workout arrangements” with borrowers who are temporarily struggling to keep up with their payments, even if those modifications presented some potential risks to the banks' portfolios.

“Prudent workout...
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