Sallie Mae and other large student-loan servicers — the companies that act as a go-between for borrowers and lenders — will soon be getting some regular oversight from the Consumer Financial Protection Bureau, the watchdog agency announced this week.
ProPublica and others have long documented student borrowers’ troubles with the companies that handle the day-to-day collection of student-loan payments and communicate with borrowers.
“Student loan servicers can have a profound impact on borrowers and their families,” CFPB Director Richard Cordray said Monday in a call with reporters. “Given how quickly this market has grown and the recent uptick in delinquency rates, it is important for us to ensure that borrowers receive appropriate attention from their servicers.”