The CFPB issued a proposed rule that would expand its regulatory authority to large nonbank student loan servicers.
Under the proposal, any nonbank student loan servicer that handles more than 1 million borrower accounts would be subject to CFPB supervisory authority. The bureau estimates that the 1 million threshold would give it authority to supervise the seven largest student loan servicers.
Those seven servicers handle a total of about 49 million borrower accounts, representing most of the activity in the student loan servicing market. The proposed rule would cover the servicing of both private and federal student loans.
The public will have 60 days to comment on the proposed rule after it is published in the Federal Register.
Read the CFPB’s press release.