ASSESSING THE EFFICACY OF THE CFPB'S REGULATION OF STUDENT LOAN COMPANIES.

Outstanding student loan balances totaled over $1.38 trillion as of December 31, 2017 with 11% of student loan debt over ninety days delinquent or in default. Due to half of all student loans being in deferment, grace periods, or forbearance, the actual delinquency rate is likely double the above figure. Delinquent student borrowers enrolled in some form of college education expect to improve their financial position. Instead, many find themselves unable to break even under the weight of large amounts of debt with confusing, and often misleading, repayment plans. Many blame the lending practices of student loan providers and servicers for the high student loan default rate. As the primary federal agency charged with the regulation of consumer financial markets, the Consumer Financial Protection Bureau ("CFPB") has used its enforcement powers against student loan companies that have violated federal consumer financial law while also developing rules and suggested practices to make the student loan market less treacherous for indebted students. The CFPB's regulatory and supervisory authority over consumer financial markets places the agency in a prime position to address the root causes of the high delinquency rate. This note will analyze the CFPB's efforts to remedy the student loan problem by assessing its use of enforcement powers, its published industry rules and guidance, and its use of other tools to promote a more transparent and navigable student loan market. Special attention is given to consumer relief resulting from historical enforcement actions, the CFPB's complaint collection and resolution process, and significant obstacles to effective regulation of the student loan market, including insufficient regulatory authority in the private student loan market, uncertainty concerning regulators' expectations of student loan companies, and inconsistent enforcement of consumer financial law. [ABSTRACT FROM AUTHOR]