Economics
Private Student Debt Refinancing Could Help Economy, CFPB Says
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Allowing consumers to refinance private loans with public funds is one option for alleviating the burden of college debt on the U.S. economy, the Consumer Financial Protection Bureau said in a report published today.
About 15 percent of the $1 trillion in outstanding education loans consists of private debt, and the CFPB suggested that a combination of private initiatives and public policy could help ease this burden. Other government agencies have concluded that education loan balances, which now exceed credit-card debt, prevent young people from investing in other parts of the economy, including housing and autos.