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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
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