The Consumer Financial Protection Bureau (CFPB) is intensifying its scrutiny of the higher education sector, as suggested by a new report it recently released on college and postsecondary school tuition plans. Ballard Spahr LLP offers an in-depth analysis of the report.
The CFPB’s report sheds light on the prevailing practices in higher education tuition payment plans, along with highlighting concerns that these plans might negatively impact consumers. The methods used by the bureau to generate this report include a thorough review of hundreds of websites of colleges and postsecondary schools offering public information on tuition plans and contracts, the submission of consumer complaints to the CFPB and Department of Education, and through interviews with consumers and meetings with the affected parties.
As part of its mission to protect consumers, the CFPB has historically had an active interest in the higher education sector, especially due to the significant financial commitments often involved. The findings and recommendations of this report could have significant ramifications for colleges, universities, and other postsecondary institutions, in turn affecting students, parents, and other stakeholders involved in arranging tuition financing.
All legal professionals working in these institutions, or representing them, need to thoroughly understand the CFPB’s findings and adjust their practices and advice accordingly. Institutions need to particularly review their tuition payment plans and related contracts to ensure they do not give rise to the concerns highlighted by the CFPB. Furthermore, they should also anticipate increased vigilance and action from the CFPB in response to consumer complaints related to these issues.
In conclusion, this recent move by the CFPB continues its pattern of focusing on institutions that have a potential high impact on consumers. It is crucial for all legal professionals in this field to take note of these developments and engage in proactive steps to address these concerns.