President Joe Biden’s nominee to America’s consumer watchdog agency told Congress he was concerned about how servicers would handle borrowers when their student loan payments — currently paused during the pandemic — resume in October.
“We are at a critical moment when so many borrowers are going to have to restart their payments,” Rohit Chopra said in response to a question about student loans during his nomination hearing this week. And the CFPB’s role will oversee how “servicers [are] communicating, and making sure that borrowers can navigate their options.”
Chopra, who is a member of the Federal Trade Commission, previously served at the Consumer Financial Protection Bureau (CFPB) after its establishment by Sen. Elizabeth Warren (D-MA). He was also a former student loan ombudsman for the bureau. Chopra appeared in front of the Senate Banking Committee on Tuesday.
“The CFPB has a big role to play in working with the Department of Education, State Attorneys General, … to make sure that all of that is happening lawfully,” he added, “so we can avoid an avalanche of defaults when any moratorium might end.”
Source: Yahoo Finance
