MCUL Comments on CFPBs Request to Promote Student Loan Affordability 

Based on a request for comment from the CFPB on the Initiative to Promote Student Loan Affordability, MCUL & Affiliates responded on April 8 describing the credit union difference and special ability credit unions have to assist members with affordable student loan options when they have exhausted Federal student loan options.

The MCUL pointed out that private student loan delinquency nationwide is 5.4%, but only 1.46% for credit unions. In part, this is due to the fact that private student loans are underwritten by credit and other risk criteria prior to being funded, similar to other credit union loans. The MCUL strongly discouraged the CFPB from implementing a regulation or guidance that would require the financial services industry to comply with private student loan modification requirements, stating because credit unions' private student loan modification plans are based on a member service model and are unique and specific to individual situations and any such regulation would be restrictive and burdensome.

Submissions to Monitor may be emailed. Bryan Laviolette is the editor of Monitor. Contact him by email or call (800) 262-6285, ext. 233. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. The MCUL reserves the right to edit submissions for clarity and space.
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