CFPB: College Tuition Payment Plans Can Confuse and Endanger Student Borrowers

CFPB report finds college tuition payment plans can put student borrowers at risk with inconsistent disclosures and confusing repayment terms.
Many tuition payment plans charge fees like enrollment, late, and returned payment fees which can create a high cost of credit.
Some schools withhold transcripts from students behind on payments, potentially preventing them from getting jobs to afford payments.
Payment plan contracts may include terms that waive borrowers' legal rights and protections.
CFPB will continue gathering information on tuition payment plans and school lending practices that may violate consumer financial laws.

consumerfinance.gov

Relevant topic timeline:

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As student loan payments resume, personal finance expert Ken Coleman criticizes the "marketing lie" of higher education and advises borrowers to address the root issue of skyrocketing tuition.

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CFPB Warns Families of Risks With College Tuition Payment Plans

A report by the Consumer Financial Protection Bureau warns of the risks associated with college tuition payment plans, including high fees, loss of legal rights, and the withholding of transcripts.

9/16/2023

CFPB: Predatory Tuition Plans Leading to Debt and Dropped Classes for Some Students

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Posted 9/14/2023, 2:01:32 PM