The Consumer Financial Protection Bureau today moved to step up its supervision of the student loan market, proposing a rule that would bring the largest non-bank loan servicers under its direct oversight, the Legal Times reported yesterday. Outstanding student loan debt in the United States tops $1 trillion—second only to mortgages in household debt—and delinquency rates have been rising. The proposed rule would give the CFPB authority to directly supervise non-bank companies if they service more than 1 million student loans. Servicers collect monthly payments, maintain account records and answer questions from borrowers. The rule would cover seven companies that together service 49 million federal and private student loans—about 70 percent of the market.
