Entities

Government Accountability Office (GAO) (8)

In May 2019, the GAO issued a report Private Student Loans: Clarification from CFPB Could Help Ensure More Consistent Opportunities and Treatment for Borrowers. In its summary, the GAO said that

In May 2018, the Fair Credit Reporting Act was amended to allow some financial institutions—including banks—to voluntarily offer rehabilitation programs for borrowers who default on private student loans.

Borrowers who complete these programs can request to have the default removed from their credit reports, which could slightly improve their access to credit. Other financial institutions are also interested in offering these programs, but are not certain of their authority to do so.

We recommended that the Consumer Financial Protection Bureau clarify which types of financial institutions have the authority to implement these programs.