Federal regulators are setting their sights on private student loans, as debt in the sector continues to rise and pose major obstacles to education and consumer health.
According to the Federal Reserve Bank of New York, the total volume of student debt in the U.S. recently surpassed total credit card dues for the first time ever. Accordingly, the newly formed Consumer Financial Protection Bureau, is seeking feedback from the public in regards to issues facing student borrowers. The data will be used in informing regulatory and bureau reporting
measures, as well as in preparing a report on private student lending mandated by the Dodd-Frank Wall Street Reform Act. "The focus on private student loans comes at a time when student debt has become a growing concern," The Associated Press reports. "An analysis by The Project on Student Debt this month found that roughly two thirds of the class of 2010 borrowed for college. Among those students, the average debt upon graduation was $25,250." That figure is up 5 percent from the previous year, the AP added.