The Consumer Financial Protection Bureau (CFPB) is seeking authority to control the seven largest non-bank, student loan lenders.  These lenders are contracted by banks and the government to manage private student loans.

The problem as the CFPB sees it, is that borrowers have no say as to who services their loan, and this loan servicer is generally different than the lender itself.  Needless to say, this can cause confusion and a myriad of other hassles for the borrower.

An article on reports that these lenders service almost 50 million student loans accounts.  CFPB Director Richard Cordray had this to say, “in many ways, a student loan can make or break a student’s financial lives."  That’s the reason the CFPB wants to take a look at the loans.

The request for a new rule to give the CFPB the power to control these entities was made on March 14, 2013.  The public now has 60 days to provide input to the Bureau on this topic.