The CFPB has launched the student loan Payback Playbook, a set of prototype disclosures that outline payments path for borrowers experiencing student loan debt distress. It would require servicers provide personalized information tailored to borrowers’ specific circumstances that show what their payments will be under different repayment plans, describe each option using straightforward language and provide real-time, up-to-date information when their plans or circumstances change.
The prototype student loan Payback Playbook most borrowers receive from their servicer will present three personalized repayment options. Struggling borrowers who have missed a payment or are at risk of default will receive one that provides a single option with personalized instructions written in plain language describing how to lower their monthly payment.
The Payback Playbook is available online and the public can provide feedback on these prototype disclosures through June 12, 2016. In the coming months, the Department of Education plans to finalize these disclosures, informed by the public feedback shared with the bureau.