Federal regulators are keeping up the pressure on banks to do more to help struggling student-loan borrowers.
A year ago, Richard Cordray, director of the Consumer Financial Protection Bureau, and Arne Duncan, the secretary of education, convened the nation’s largest lenders and loan servicers to urge them to offer modified repayment plans to borrowers facing default. Since then, two of the largest lenders, Wells Fargo and Discover, have announced that they will offer modified plans. (Wells Fargo said it would lower interest rates and extend repayment terms for borrowers facing economic hardship.) Other lenders have told the bureau they will follow suit.
Read more at The Chronicle of Higher Education: http://chronicle.com/blogs/ticker/federal-agency-asks-banks-for-straight-talk/93037