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Student loan refinance rates: 10-year fixed-rate loans fall slightly

Student loan refinance rates slip for 5- and 10-year loans


Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

The latest trends in interest rates for student loan refinancing from the Credible marketplace, updated weekly. (iStock)

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans are trending slightly down for 10-year fixed-rate loans, while 5-year variable rates are up.

For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender during the week of Apr. 11, 2022:

  • Rates on 10-year fixed-rate refinance loans averaged 4.18%, down slightly from 4.19% the week before and up from 3.77% a year ago. Rates for this term hit their lowest point of 2021 during the week of Nov. 22, when they were at 3.35%.
  • Rates on 5-year variable-rate refinance loans averaged 3.46%, up from 3.12% the week before and 3.29% a year ago. Rates for this term hit their lowest point of 2021 during the week of Nov. 22, when they were at 2.41%.

Student loan refinancing weekly rate trends

If you’re curious about what kind of student loan refinance rates you may qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates won’t affect your credit score.

Current student loan refinancing rates by FICO score

To provide relief from the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended through at least August 31, 2022. As long as that relief is in place, there’s little incentive to refinances federal student loans. But many borrowers with private student loans are taking advantage of the low interest rate environment to refinance their education debt at lower rates.

If you qualify to refinance your student loans, the interest rate you may be offered can depend on factors like your FICO score, the type of loan you’re seeking (fixed or variable rate) and the loan repayment term.

The chart above shows that good credit can help you get a lower rate and that rates tend to be higher on loans with fixed interest rates and longer repayment terms. Because each lender has its own method of evaluating borrowers, it’s a good idea to request rates from multiple lenders so you can compare your options. HAS student loan refinancing calculator can help you estimate how much you might save.

If you want to refinance with bad credit, you may need to apply with a co-signer. However, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.

You can use Credible to compare rates from multiple private lenders at once without affecting your credit score.

How rates for student loan refinancing are determined

The rates private lenders charge to refinance student loans depend in part on the economy and interest rate environment, but also the loan term, the type of loan (fixed-or variable-rate), the borrower’s creditworthiness and the lender’s operating costs and profit margin .

About Credible

Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options ― without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unrivaled customer experience, as reflected by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.



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City Council forgives commercial rehab loan for Theede family – Crookston Times

City Council forgives commercial rehab loan for Theede family


Jess Bengtson Managing Editor

After a lengthy discussion, Crookston City Council agreed during their last meeting to forgive a commercial rehabilitation loan for the family of Craig Theede – a local chiropractor who passed away in April 2021 after a car accident. The $13,399 rehab loan would have been totally forgiven through the program after a five-year period had the business, Aspen Chiropractic, remained open but the agreement time period had only lapsed by two-and-a-half years.

Interim City Administrator and City Attorney Corky Reynolds told the Council that Theede and his widow have two children under the age of four and the building the business was in was to be sold, and closing was the next day. Katherine Theede had put in a request to the city to forgive the commercial rehab loan in its entirety so the building could be sold without a lien on the property.

Reynolds clarified that there were no status stipulations and City Finance Director Ryan Lindtwed said the Council had the say in whether they forgave the loan or not. At-Large City Council Member Wayne Melbye later suggested the Council put a stipulation for future commercial rehab loans and potentially add a life insurance policy requirement.

Ward 2’s Steve Erickson said he believed the Theede family had intentions of fulfilling the loan and At-Large Council Member Tom Vedbraaten echoed his thoughts saying the situation was “tragic, no doubt.” Ward 6’s Dylane Klatt said he believed Theede’s business would have been in Crookston another two-and-a-half years and the city probably wasn’t going to see the money as they would have fulfilled their agreement. Vedbraaten added that someone passing away versus a business just closing up was a different story.

Reynolds said if the Council decided not to forgive the commercial rehab loan it could “put a damper” or even stop the sale of the property as the Theede family wouldn’t be able to issue the satisfaction. Reynolds said earlier in the conversation that the buyer was planning for “a couple different offices” in the building and Ward 1’s Kristie Jerde said that would benefit the city. In the resolution it said the property will continue to house commercial entities conducting business within the City of Crookston.

“Whoever moves in there is getting an attractive building,” added Mayor Dale Stainbrook. “He (Craig) did a nice job on it.”



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Rate transmission pace to improve for external benchmarked loans: RBI study

RBI, Reserve Bank of India


The pace of transmission is expected to improve going forward for external benchmark-linked loans as their proportion increases further, according to a Reserve Bank of India study.

Analysts pointed out that till date borrowers have seen the benefit of an easing rate cycle. Now the cycle has turned with the rise in market borrowing rates, factoring in inflation, gradual withdrawal of excess liquidity and impending policy rate hike. This sets the stage for a probable rise in externally benchmarked rates in the months ahead.

The transmission to banks’ lending and deposit rates has improved notably since October 2019. It was facilitated by the introduction of an external benchmark-linked lending rate (EBLR) system, accommodative monetary policy stance, large surplus liquidity and subdued credit demand.

RBI’s study on EBLR in its April month bulletin said that after the introduction of the regime in October 2019, the share of personal loans and MSMEs loans has risen significantly as a proportion of outstanding loans linked to external benchmarks. Banks are voluntarily pricing their loans linked to such benchmarks in other sectors as well.

The share of EBLR loans by banks has increased from a mere 2.4 per cent in September 2019 to 28.6 per cent in March 2021 and further to 39.2 per cent in December 2021, RBI said.

The weighted outstanding average lending rates (WALRs) on fresh as well as rupee loans have declined across sectors. Banks have extended the benefits to existing borrowers by reducing the WALR more than the repo rate cuts during the EBLR period.

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Veterans United Home Loans ranks No. 14 on Fortune Magazine’s List of 100 Best Companies to Work For

Veterans United Home Loans ranks No. 14 on Fortune Magazine's List of 100 Best Companies to Work For


COLUMBIA, Mo., April 18, 2022 /PRNewswire/ — Veterans United Home Loansthe nation’s largest VA lender, was named on Fortune Magazine’s list of 100 Best Companies to Work For in 2022.

Veterans United ranked No.14 on the 100 Best Companies To Work For list. The annual list is compiled by the international publication along with the global research and consulting firm Great Place to Work.

“Having a spot on Fortune’s Great Place to Work for the seventh consecutive year is an honor. It all comes down to our employees and their passion for impacting and enhancing the lives of our nation’s Veterans, service members, our families, communities, and each other,” said August NielsenVice President of People Services for Veterans United. “We collectively define our company’s success by directly living out our employee-created values: be passionate and have fun, deliver results with integrity and enhance lives every day.”

Tea Fortune 100 Best Companies to Work For is highly competitive, and 2022 marks the 25th anniversary of the list. Great Place to Work, the global authority on workplace culture, selected the list using rigorous analytics and confidential employee feedback. Companies were only considered if they had been a Great Place to Work-Certified organization.

Great Place to Work is the only company culture award in America that selects winners based on how fairly employees are treated. Companies are assessed on how well they are creating a great employee experience that cuts across race, gender, age, disability status, or any aspect of who employees are or what their role is.

“Best Companies’ leadership has never been more necessary,” said Michael C. BushCEO of Great Place to Work. “As workers struggle with the Great Resignation, burnout and Covid disruptions, these exceptional companies offer workplace experiences as strong a priori to the pandemic. These companies get that ‘place’ is wherever their employees are sitting or standing, and they are committed to making that place equitable, safe and productive. Their commitment to genuinely care for their people through trust, inclusion, purpose and meaningful flexibility for life circumstances goes beyond surface-level perks and is a model for the market to follow.”

One aspect that makes Veterans United unique is its foundation, which is supported solely by the company’s employees and its affiliates. In 2021, the Veterans United Foundation celebrated its 10th anniversary by donating an additional $10 million on top of other giving to help communities nationwide, which assisted 139 individuals and 93 organizations. In total, the foundation donated more than $20 million throughout the year.

“Our employees share a passion for wanting to enhance the lives of others. It was something the company was intentional about before the foundation was created, as we’ve always been focused on enhancing lives and supporting others,” said Erik Morseboard president of the Veterans United Foundation. “By forming the Veterans United Foundation 10 years ago, not only were we able to give back more to the communities we call home, but we were also able to provide more opportunities for our employees to give back collectively.”

To see the complete list of the 2022 Fortune 100 Best Companies to Work For®, click here.

About Veterans United Home Loans
Based in Columbia, Mo.the full-service national lender financed more than $25.8 trillion in loans in 2020 and is the country’s largest VA purchase lender. The company’s mission is to help Veterans and service members take advantage of the home loan benefits earned by their service. The company’s employee-driven charitable arm, Veterans United Foundation, is committed to enhancing the lives of Veterans and military families nationwide by focusing on supporting military families and nonprofit organizations that strengthen local communities. Veterans United Home Loans and its employees have donated more than $100 million to the Foundation since its founding in November 2011. Learn more at EnhanceLives.com.

About the Fortune 100 Best Companies to Work For®
Great Place to Work® selected the Fortune 100 Best Companies to Work For® by gathering and analyzing confidential survey responses from more than 4.5 million current US employees at Great Place to Work-Certified™ organizations. Company rankings are derived from 75 employee experience questions within the Great Place to Work Trust Index™ survey. Read the full methodology.

About Great Place to Work®
Great Place to Work® is the global authority on workplace culture. Since 1992, they have surveyed more than 100 million employees worldwide and used those deep insights to define what makes a great workplace: trust. Their employee survey platform empowers leaders with the feedback, real-time reporting and insights they need to make data-driven people decisions. Everything they do is driven by the mission to build a better world by helping every organization become a great place to work For All™.

VeteransUnited.com | 1-800-884-5560 | 1400 Veterans United Drive, Columbia, MO 65203 | NMLS ID #1907 (www.nmlsconsumeraccess.org). A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Equal Opportunity Lender. Mortgage Research Center, LLC.

SOURCE Veterans United Home Loans

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Govt signed new loans worth $628.8m in first half of 2021/22

Govt signed new loans worth $628.8m in first half of 2021/22


Government signed new loans worth $628.79m (Shs2.2 trillion) in the first half of the 2021/22 fiscal year, a Ministry of Finance report shows.

The loans from different creditors seek to support government fulfil planned budget programmes, among which include public sector transformation, climate change and water management and human capital development.

A report by the Ministry of Finance, which highlights management of public debt, guarantees, financial liabilities and grants, indicates that government as of December 2021, sang new loans with African Export-Import Bank (Afrexim), International Fund for Agricultural Development (IFAD) ), Italy and Spain, among others.

Afrexim constituted the biggest portion of the signed loans, accounting for 64 percent followed by (IFAD), which contributed 16 percent. Loans from Spain and Italy constituted 5 percent and 2 percent, respectively.

During the period government signed two loans amounting to $402.32 (Shs1.4 trillion) from Afrexim to fund public sector transformation while $103m (Shs 366.6b) was signed in July from IFAD to support agro-industrialization and development of the National Oil Seeds Project .

Other loans included $80.98 (Shs288.2b) from AFD to support natural resources, environment, climate change, land and water management, $11.72m (Shs41.7b) from Italy to support human capital development and Karamoja Infrastructure Development Project and two traches from Spain of $19.97m (Shs71b) and $10.8m (Shs38.4b) for the refurbishment of the Kampala-Malaba Meter Gauge Railway.

During the period, the Ministry of Finance indicated that loan financing decreased by 21 percent because government is being cautious on debt position not to exceed the recommended debt to gross domestic product ratio threshold of 50 percent.

The report also indicates that as of February 28, Parliament had approved a $90m (Shs320.4b) in December from the World Bank to the support secondary education expansion project, which seeks to enhance access to lower secondary education by focusing on underserved populations in targeted areas.

The Ministry of Finance also reported that a number of loans have been negotiated while others are awaiting Cabinet approval.

Among those still under negotiation include two loans of $340m Shs1.2 trillion and $150m (Shs534b) from World Bank to support the energy access scale up project and mineral development investment in industrial transformation and employment project accountability, respectively.

Another €417m (Shs1.8 trillion) from Standard Chartered for budget support is also still under negotiation.

Awaiting approval

Those awaiting Cabinet approval include a $16.2m (Shs57.6b) loan from the Saudi Arabia Fund for Construction and Equipping of Technical Institute to support vocational education and training and €40m (Shs178b) from KfW to upgrade and improve electricity transmission lines in Mbale- Bulambuli.

Another $140m (Shs498.4b) loan from the World Bank to support the digital acceleration project – Govnet ICT is also awaiting Cabinet approval.

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Loans from THESE two banks get more expensive

Loans from THESE two banks get more expensive


Be ready to take a loan at a higher interest rate from the State Bank of India (SBI) and Axis Bank as both the banks have increased their marginal cost of lending rate (MCLR).

MCLR is a benchmark interest rate, which is the minimum rate at which banks are allowed to lend.

The country’s largest lender State Bank of India (SBI) has hiked its MCLR by 10 basis points (bps) across all tenors, with effect from April 15, 2022. While Axis Bank has hiked its MCLR by 5 basis points across tenures, with effect from April 18.

READ | EPFO salary limit to increase soon, move expected to benefit 75 lakh people

Now after this, all types of loans such as home, auto and other will become expensive. However, those loans which will be linked to external benchmarks like repo rate, will not have any effect on them.

How much do you have to pay now?

If you have taken a loan of Rs 20 lakh from SBI for 20 years and are paying 7 percent interest on it, then your EMI of Rs 15,506 will come.

But now your EMI will increase to Rs 15,626 as the interest rate hiked to 7.10 percent. That means you will have to pay Rs 1,440 more as your EMI.

Recently, Bank of Baroda also hiked MCLR by 5 bps across tenures. The benchmark one-year tenor MLCR is at 7.35 per cent with effect from April 12, 2022.

READ | 5 things to check before buying a life insurance policy

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Revolut, Cross River link up to offer US consumer loans

Revolut, Cross River link up to offer US consumer loans


Dive Brief:

  • Neobank Revolut is partnering with Cross River Bank to offer personal loans to its US consumers, the two companies announced Thursday.
  • The London-based fintech, which is already partnering with New York-based Metropolitan Commercial Bank to offer digital banking services in the US, said it is leveraging Cross River’s technology and regulatory expertise to scale and expand across business verticals including credit.
  • Revolut said customers who use the personal loan offering, which will be available for its US customers in the coming months, won’t be subject to late fees, origination fees or prepayment penalties.

Dive-Insight:

Since entering the North American market in 2020Revolut has been trying to establish its presence in a digital banking landscape dominated by US-based players such as Varo and Chime.

Revolut’s upcoming consumer loans product offering will help set it apart from other competitors in the space, the company said.

“We’re trying to create a financial superapp that can cater to every single financial need of the customer. That’s the genesis of this product,” said Tarun Bhushan, Revolut’s head of US lending.

The personal loan product will feature same-day loan funding, the company said. Customers can also set up automatic payments for the loans.

“[O]nce the loan is approved, it can land in the user’s Revolut wallet account in minutes,” the company said in a press release.

Revolut said it is notifying customers via email if they have been pre-selected for the personal loan offering.

The neobank plans to offer loans ranging from $1,000 to $30,000. That range, however, is subject to revision as the company collects more credit data ahead of the launch, Bhushan said.

“We have done a lot of analytics using credit bureau datasets to ensure that we are offering very competitive interest rates as well,” Bhushan said.

The neobank offers its personal loan product to customers based in Poland, Lithuania and Ireland, Bhushan said.

The start of the COVID-19 pandemic impacted Revolut’s entering the US in early 2020; the neobank launched without the fanfare it had shown in other markets, former Revolut USA CEO Ron Oliveira told Banking Dive last year.

“We knew what we had to offer resonated, even in COVID times, so that’s why we launched. However, there was no reason, we felt, to advertise and push the product any further than that, because of what was going to happen with travel, with people in or out of the office, all those elements,” said Oliveira, who left the fintech in January to become the CEO of Bellevue, Washington-based Moonstone Bank, according to his LinkedIn profile.

To gain an edge in the competitive US market, Revolut has also taken the bank charter route.

The company submitted a draft applicationn with the Federal Deposit Insurance Corp. (FDIC) and the California Department of Financial Protection and Innovation in March 2021 to obtain a banking license in the US

The neobank also launched a small business banking product stateside last year, and is exploring offering loans to its small-business customers, Bhushan said.

“We don’t want to create products to cater to just one small segment in one country. We are building a global financial superapp,” Bhushan said. “You will see a lot more products over the coming months or years. We’re going to continue to offer more and more options to our consumers to satisfy all their financial needs.”



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Why non-QM loans might be right for you

Why non-QM loans might be right for you


buying a home
(© Jirapong – stock.adobe.com)

Starting your home-buying journey can be exciting, but even the first critical step of the process can have you questioning how to start financing a home purchase. If you’re thinking of applying for a qualified or traditional home mortgage and have a W-2 job as your source of income, then the process seems to be pretty easy.

However, if you’re a business owner, contractor, or freelancer of a 1099 employee, then getting a qualified loan may be hard for you, and you’ll need to use Non QM home loans because the majority of the insurance companies consider these types of employment as self-employment.

For self-employed people who are struggling to obtain home financing, non-qualified mortgages or non-QM home loans are greatly helpful.

Unfortunately, the majority of people are not aware of what non-QM loans are and their benefits. Keeping that in mind, we’ve prepared a full guide covering the benefits of non-QM home loans and why it might be right for you.

What exactly are non-QM home loans?

A “non-QM” loan is any mortgage that doesn’t meet the established requirements of a qualified mortgage. Borrowers who have variable or lump-sum incomes or who are self-employed as businessmen, freelancers, contractors, service employees, pensioners, actors, writers, musicians, and others, will benefit from these non-traditional loans.

There are some benefits to working with a non-QM lender, like nonqmhomeloans. Because they offer more flexibility in granting approval to certain types of borrowers than the traditional QM home mortgage lenders.

Who can benefit from non-QM home loans

Non-QM mortgages are available for creditworthy borrowers with non-traditional incomes, assets, and no earnings, borrowers with high net worth, borrowers with a bad credit score, or those who faced difficulty in applying or qualifying for a qualified home mortgage loan.

Here are the common examples of people who can benefit from these loans.

  • self-employed people
  • Real estate builders and investors
  • Foreign national borrowers
  • Prime borrowers
  • Non-prime borrowers
  • Borrowers who want an interest-only payment option
  • Borrowers with significant assets

What are the benefits of non-QM loans?

There are numerous benefits of Non-QM loans as compared to traditional and government loans. Some of those benefits are:

#1: Non-QM loans for everyone

Non-QM loans are for everyone despite their credit history. Everyone can choose a home mortgage package that suits them. Borrowers with strong credit, terrible credit, recent bankruptcies, previous foreclosure, previously missed payments, retired homeowners, or those without employment but considerable assets may be eligible.

#2: Open-minded policy for granting loans

Non-QM lending rules are different from traditional loan guidelines. On conventional loans, there are no special cases. Non-QM lenders, on the other hand, are more flexible and willing to grant exceptions. Before making a judgment, a non-QM mortgage inspector will check the borrower’s complete credit and financial profile.

The ability to pay back the loan is crucial. Non-QM lenders, on the other hand, will examine other sources of income.

#3: Less formal documentation

One benefit of applying for non-QM loans is that they require less formal documentation than conventional or government loans. Most of the QM-loans do not require tax returns, W-2s, or employment verification.

This is an advantage for people who don’t have a stable source of income but do have other means of paying their mortgages.

#4: Can accommodate higher DTI ratio

Non-qualified mortgages give homeowners more flexibility within the lender’s criteria, whereas other lending programs may require that your debt-to-income ratio is below a certain percentage. Non-qualified mortgage loans allow lenders to handle higher DTIs by a few percentage points than qualified mortgage loans.

take away

Non-QM home loans are getting more popular day by day because of the ease they provide to people wanting to buy their own homes. These loans are for everyone, no matter their credit history or income. If you want to buy your own home, we suggest you take a Non-QM loan instead of the traditional one.

Story by Colton Barter

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US DOT to loan $1.76 billion to Purple Line Light Rail Transit Project in Maryland

US DOT to loan $1.76 billion to Purple Line Light Rail Transit Project in Maryland




Written by David C. Lester, Managing Editor

The first assembled Purple Line light rail vehicle.

Maryland DOT

After navigating some choppy air during the past several years, the Maryland Purple Line project received a much-needed boost from the US DOT.

The US Department of Transportation announced that its Build America Bureau (Bureau) has provided up to a $1.76 billion low-interest loan to Purple Line Transit Partners for the Purple Line Light Rail Transit Project in Maryland. The loan will finance up to 33 percent of the $5.9 billion in eligible project costs. The Bureau helps communities across the country deliver infrastructure projects by providing Transportation Infrastructure Finance and Innovation Act loans, known as TIFIA loans, and other types of innovative financing.

“The Purple Line will provide faster, more direct, and more reliable transit service for the suburban Maryland and DC region’s residents and visitors while easing congestion on local roads,” said Deputy Transportation Secretary Polly Trottenberg. “By cutting an estimated 17,000 vehicle trips each day and operating using electric power, this project has tremendous environmental benefits as well.”

Purple Line train side view (Maryland DOT)

Currently under construction, the Purple Line is a 16.2-mile, 21-station, east-west light rail transit line that will extend from Bethesda in Montgomery County to New Carrollton in Prince George’s County. Five major activity centers (Bethesda, Silver Spring, Takoma-Langley Park, College Park, and New Carrollton) will connect with 16 other stations that serve residential communities, commercial districts, and institutional establishments. The project will provide direct connections to four branches of the existing Metrorail system, all three MARC commuter rail lines and Amtrak’s Northeast Corridor line. The project will also include completion of the Capital Crescent Trail supporting bicyclists and pedestrians.

“The much-anticipated Purple Line will serve areas that will benefit from associated economic development, while creating opportunities for transit-oriented development,” said Bureau Executive Director Morteza Farajian. “We worked closely with our partners to finalize this loan, which is an essential piece of the financing to move this critical project forward.”

The Maryland Department of Transportation Maryland Transit Administration is working under a Public Private Partnership Agreement (P3 agreement) with Purple Line Transit Partners to design, build, operate, and maintain the light rail system for 35 years. The new loan replaces a previous $874.6 million loan closed in June 2016.

The Build America Bureau was established as a “one-stop-shop” during the Obama Administration to help states and other project sponsors carry out infrastructure projects. The Bureau offers low-interest, long-term credit programs, technical assistance, and best practices in project planning, financing, delivery, and operation. The Bipartisan Infrastructure Law, signed by President Biden in November 2021, expands project eligibility for the Bureau’s TIFIA credit program and extends maturity of the loans, giving borrowers additional flexibility. To date, the DOT has closed more than $37.7 billion in TIFIA financings, supporting more than $130 billion in infrastructure investment across the country.

Read more about passenger rail.

For brief news updates and commentary, please follow me on Twitter @davidclesterRTS

Categories: News, Passenger, Rail News, Rapid Transit/Light Rail, Track Construction
Tags: $1.76 billion DOT loan, Breaking News, Maryland Department of Transportation, Maryland Purple Line project, Maryland Transit Administration, Morteza Frarajian, Purple Line light-rail trains



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CFPB Highlights Default Risk Factors for Student Loans

No Port in a Storm: Ensuring DIP Loans Do Not Inadvertently Cross the Criminal Interest Threshold


On April 14, the Consumer Financial Protection Bureau (CFPB or Bureau) published a report titled Student Loan Borrowers Potentially At-Risk when Payment Suspension Ends. The publication uses data from the CFPB’s Consumer Credit Panel to identify which types of borrowers may struggle to make their scheduled loan payments based on five potential risk factors:

  1. Pre-pandemic crimes on student loans
  2. Pre-pandemic payment assistance on student loans
  3. Multiple student loan services
  4. Delinquencies on other credit products since the start of the pandemic
  5. New third-party collections during the pandemic

The CFPB finds that about 15 million borrowers have at least one of the potential risk factors considered in this report, and over 5 million have at least two.

On April 6, President Joe Biden announced an extension of the federal student loan pause through August 31. In his statement, Biden suggested that if these loan payments were to resume on schedule in May, analysis of recent data from the Federal Reserve indicated that millions of student loan borrowers would face significant economic hardship, and delinquencies and defaults could threaten Americans’ financial stability.

Much like the Bureau’s recent activity around medical debt, this report seems to signal a wider and more aggressive conversation the CFPB is having with consumers and financial institutions about student loan debt. In a blog post on April 14, the CFPB referenced the Biden administration’s student loan extension, noting three things that borrowers and lenders should keep in mind: borrowers are at risk of struggling when payments return; borrowers could face bills for unnecessarily high amounts; and millions of borrowers are also navigating servicing transfers. Two days earlier, on April 12, the Bureau published another blog post “busting myths” about bankruptcy and private student loans, explicitly stating that education loans “can” – emphasis in the original – be discharged in bankruptcy.

The picture here is of an administration and a regulatory agency deeply concerned with the economic well-being of American consumers, and willing to take much bolder action than previous administrations. How these actions will interact with the complex American economic system, however, is not as clear.

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