The Consumer Financial Protection Bureau warned that private lenders use deceptive practices to mislead federal student loan borrowers about refinancing, potentially costing them access to loan forgiveness programs. Refinancing converts federal loans into private debt, eliminating eligibility for relief options like Public Service Loan Forgiveness and income-driven repayment plans. The CFPB report highlights that borrowers may lose forgiveness opportunities, while private lenders profit from full loan repayments.
Category
🗞
NewsTranscript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The Consumer Financial Protection Bureau warned that private lenders
00:05use deceptive practices to mislead federal student loan borrowers about refinancing,
00:11potentially costing them access to loan forgiveness programs.
00:14Refinancing converts federal loans into private debt, eliminating eligibility for relief options
00:19like public service loan forgiveness and income-driven repayment plans.
00:23The CFPB report highlights that borrowers may lose forgiveness opportunities while
00:28private lenders profit from full loan repayments.
00:30For all things money, visit Benzinga.com slash GSTV.