Jim Holt, vice president of sales operations for Credit Union Student Choice isn't too terribly concerned about the Consumer Financial Protection Bureau (CFPB) proposed rule that would allow the agency to supervise nonbank student loan servicers for compliance with federal consumer financial laws.
Jim Holt, vice president of sales operations for Credit Union Student Choice isn’t too terribly concerned about the Consumer Financial Protection Bureau (CFPB) proposed rule that would allow the agency to supervise nonbank student loan servicers for compliance with federal consumer financial laws.
“Our servicer, UAS, will likely not fall under this as while CU Student Choice has helped 42,000 borrowers, the total accounts is well below one million accounts,” Holt tells the LoneStar Leaguer.
Under the proposed CFPB rule, any nonbank student loan servicer that handles more than one million borrower accounts would be subject to CFPB supervisory authority.
The CFPB asserts that the proposed rule would bring new oversight to this market and give the CFPB visibility into the complete cycle of student loan debt, from origination through servicing to debt collection and credit reporting.
“The exercise of this new authority would help protect millions of student loan consumers from potential dead ends,” CFPB’s Richard Cordray said in a prepared statement last week.
Holt says CU Student Choice is very pleased with the level of service being provided by UAS.
“UAS does an outstanding job,” he says. “Our industry low charge-off rate of 0.57 percent is definitely one indicator of how our solution is providing the right education before borrowing, working with school financial aid offices in gaining loan certification, communicating with students while they are enrolled and then helping following graduation or separation including offering repayment relief.”
Holt goes on to say that he strongly believes credit unions are leading this industry to higher ground - creating value and affordability to student borrowers across the country.
CU Student Choice is the leading provider of turn-key private student lending services to America’s credit unions. The Student Choice solution helps credit unions make direct loans to students and families at a local level, making them an even more valuable resource to their community while providing a genuine opportunity to develop long-term relationships with these borrowers.
CU Student Choice is a premiere business alliance of Credit Union Resources, Inc.