On April 28, 2016, the CFPB released its "Payback Playbook" initiative proposal, which concerns loan servicers laying out student loan repayment options in communications with borrowers in order to "reduce defaults, improve borrower outcomes, and spur innovation." The Bureau is requesting comments in response to its proposed templates (or "Payback Playbooks"), which would require, inter alia, that communications with borrowers include information about alternative repayment options, such as "Pay As You Earn" (PAYE) and "Income-Based Repayment" (IBR).
Public comments in response to the proposed initiative are due by June 12, 2016.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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