The Consumer Financial Protection Bureau’s recent guidance on withholding transcripts from students with debts revealed that the CFPB is using a broad definition of “private education loan” that may apply to the practices of some not-for-profit schools. Additionally, while the CFPB characterized this practice as “abusive,” its analysis suggests that these practices may also be “unfair,” meaning that the Federal Trade Commission, states, and other regulators may also have authority to address them.
Read on for details about this development and important takeaways for schools with in-house lending programs.