Bill Overview
Title: CFPB Student Loan Integrity and Transparency Act of 2022
Description: 2022 This bill requires the Department of Education (ED) to provide information related to student loans to the Consumer Financial Protection Bureau (CFPB). The bill prohibits ED from entering into an agreement with a contractor or vendor that services student loans unless the contractor or vendor agrees to provide requested information to the CFPB. It also requires the CFPB to maintain adequate staffing levels to carry out its duties.
Sponsors: Rep. Porter, Katie [D-CA-45]
Target Audience
Population: Individuals with student loans globally
Estimated Size: 45000000
- This bill primarily affects individuals with student loans, as it pertains to the provision of their loan information between the Department of Education and the CFPB.
- The bill will impact both current student loan borrowers and future borrowers as it mandates transparency and data sharing, which could affect loan servicing.
- The global population of student loan borrowers includes primarily those in developed economies with government-backed student loan systems, mainly located in the U.S., Europe, Canada, Australia, and parts of Asia.
- Although the legislation is U.S. based, similar data transparency initiatives could influence discussions and legislation in other countries, albeit indirectly.
- In the U.S., the legislation could also affect people working within the CFPB and loan servicing companies who will need to adapt to new data-sharing requirements.
Reasoning
- Given the budget constraints and the large target population of approximately 45 million in the U.S., the policy implementation needs to prioritize transparency and data-sharing efficiency without excessive costs per individual.
- The policy primarily aids in improving the transparency of student loan management, which may not immediately translate to a tangible increase in satisfaction with well-being for each affected person initially.
- Since it involves systematic change, the effects might be more pronounced over longer periods as trust and satisfaction with the loan process improve and oversight helps ensure fair practices.
- The policy will most directly impact those currently managing large outstanding loans or having experienced issues with loan servicers, hence potential improvements in well-being might be more significant for this segment.
- For others, particularly those nearing the end of loan payments, the positive impact might be less noticeable immediately, suggesting targeted communication is necessary to reinforce the policy's benefits.
Simulated Interviews
Graduate student (New York)
Age: 24 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- The current system is hard to navigate and I sometimes feel lost in my repayment process.
- I hope this new policy will help me understand my loan better and make sure my repayments are being recorded accurately.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Software engineer (Texas)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- If this policy really leads to better management and oversight of servicers, that would ease a lot of my stress.
- The more transparent the process, the better I can plan my finances without worrying about unexpected issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Loan officer (California)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- There's a risk of increased workload or changed processes, which is troubling.
- However, if it makes the whole system more reliable, I'm all for adapting even if it means extra work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
High school teacher (Illinois)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- I think this bill is a great step towards ensuring future borrowers don't face the same challenges I did.
- Greater transparency and oversight will lead to better outcomes for students and graduates.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Healthcare worker (Ohio)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- I often feel overwhelmed by the lack of clarity in my loan details and interest calculations.
- This policy can potentially make a huge difference if it helps clear up communication and streamline processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Undergraduate student (Florida)
Age: 22 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Knowing that there will be more transparency and accountability with my loan can ease my transition from college to the workforce.
- I need my focus to remain on my studies rather than worrying about financial issues already.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 9 | 6 |
Retired (Virginia)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I hope this helps prevent financial strains on families supporting their college-educated children.
- It's high time the system becomes clearer and more accountable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small business owner (New Jersey)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I'm cautiously optimistic this policy will make my loan repayments more predictable, which is crucial for my business planning.
- Anything that helps in managing financial liabilities effectively is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Policy analyst (Massachusetts)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- Effective policy implementation can be transformative beyond just the immediate effects on the debt-saddled individuals.
- I am hopeful but aware of the many challenges in enforcement and ensuring ultimate accountability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Public school administrator (Minnesota)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I wish legislation like this had been enacted years ago.
- Anything that aids students and graduates in understanding their financial responsibilities is beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Cost Estimates
Year 1: $120000000 (Low: $80000000, High: $150000000)
Year 2: $125000000 (Low: $85000000, High: $160000000)
Year 3: $130000000 (Low: $90000000, High: $170000000)
Year 5: $135000000 (Low: $95000000, High: $180000000)
Year 10: $150000000 (Low: $110000000, High: $200000000)
Year 100: $300000000 (Low: $250000000, High: $350000000)
Key Considerations
- The operational capability of the CFPB to handle additional data influx efficiently.
- Contractual changes required by loan servicers to comply with data sharing requirements.
- Long-term benefits of improved loan servicing on default rates and federal student aid dependability.