Mr. Greenhaw has written a good piece on the problem of growing student debt. However, he makes an all-too-common misstatement about oversight of private education loans. (He wrote, "Private loans that don’t go through the University are unregulated and unmonitored by the government.") While it is true that the U.S. Department of Education does not regulate private education loans, these consumer loans are regulated by the various federal agencies that oversee banks, credit unions, and non-bank lenders. Private education loans must comply with the federal Truth-in-Lending Act, the Equal Credit Opportunity Act, and the Gramm-Leach-Bliley Act, just to name a few.
Posted on May 7 at 8:37 a.m.
Mr. Greenhaw has written a good piece on the problem of growing student debt. However, he makes an all-too-common misstatement about oversight of private education loans. (He wrote, "Private loans that don’t go through the University are unregulated and unmonitored by the government.") While it is true that the U.S. Department of Education does not regulate private education loans, these consumer loans are regulated by the various federal agencies that oversee banks, credit unions, and non-bank lenders. Private education loans must comply with the federal Truth-in-Lending Act, the Equal Credit Opportunity Act, and the Gramm-Leach-Bliley Act, just to name a few.
On ‘Generation Debt’ afflicting students