NCUA's Letter to Credit Unions on Student Loan Resumption
The National Credit Union Administration (NCUA) has issued a letter to credit unions on the resumption of federal student loan payments. The letter covers the impact on student loan borrowers and details on risk management principles.
"As federal student loan payments restart, some credit union members may have difficulty meeting their repayment obligations. The resulting increase in total repayment obligations may also negatively impact members’ ability to repay other outstanding loans. The NCUA encourages credit unions to work constructively with impacted borrowers and will not criticize a credit union’s efforts to provide prudent relief to borrowers when such efforts are conducted in a reasonable manner with proper controls and management oversight and consistent with consumer financial protection requirements," reads the letter.
Read the letter in full here.