What the Consumer Financial Protection Bureau ... - Venable LLP

CFPB REGULATION OF PRIVATEEDUCATIONAL LOANS• CFPB has specific supervisory authorityover any non-bank that offers or provide any“private educational loans” as defined inSection 140 of Truth in Lending Act (“TILA”).Section 1024(a)(1)(D).• Schools that extend credit to their studentsmay provide “private education loans” asdefined in TILA and Regulation Z.• Schools that assess finance charges on extensionsof credit are making “private education loans”unless term limited to 90 days or less.• Schools that do not assess finance charges butprovide for repayment term of more than 12 monthsare making private education loans.• Specific authority over “private educationlenders” supersedes “merchant exemption”• CFPB also has authority to supervisefinancial products and services that pose a“risk to consumers”