The purpose of NCHER’s
Not-for-Profit (NFP) Lender and Servicer Caucus is to provide a forum for the
exchange and solicitation of ideas and the promotion of legislative and
regulatory initiatives important to state-designated lenders, secondary markets,
servicers, and third-party service providers focused on providing and improving
access to and successful repayment of federal and private student loan
programs. The Caucus’ mission is aligned with NCHER’s mission to enhance member
organizations’ abilities to help families and students develop, pay for, and
attain their educational goals so they can pursue meaningful and rewarding work
and become contributing members of society.
The Caucus’ membership includes
those NCHER members who are in good standing; who are nonprofit entities under
the Internal Revenue Code of 1986; and who are state-designated lenders,
secondary markets, servicers, and/or third-party service providers interested
in promoting federal and private student loans.
The Caucus is led by a
chair who should, when present, preside at all meetings of the membership. The
chair is elected by the Caucus’ members for a two-year term. The Caucus may
designate a co-chair to assist in carrying out the duties specified in this
The Caucus holds monthly
meetings via conference calls and has an active email list-serve for the
exchange of information among its membership. The Caucus may hold other
meetings at a time and place to be designated by the chair.
The Caucus may, with the
concurrence of the membership, create committees or working groups: 1) to
assist it in carrying out the duties specified in this document; or 2) that
are deemed to be in the best interest of the membership.
- Assists NCHER,
including its advocacy staff, in identifying items of interest to its
membership at the federal level and building consensus on policy positions that
can be promoted with Members of Congress and the Administration. Such efforts
include, but are not limited to, assisting the NCHER Government Relations
Committee in the development of proactive legislative priorities for
consideration during the second session of the 114th Congress. It
also includes successfully advocating for NCHER’s advocacy priorities before
the U.S. House, U.S. Senate, White House, and federal agencies.
- Assists NCHER,
including the NCHER Government Relations Committee, in monitoring and
responding, in support or opposition, to provisions included in House and
Senate legislation that impacts the membership.
- Assists NCHER,
including its communications staff, in the development of "one-pagers”
highlighting the important work that the nation’s lenders and servicers provide
to students, borrowers, families, and communities, and proactively highlighting
positive stories and quickly responding to complaints raised by student and
consumer advocates on how the membership services student loans.
- Assists NCHER in
educating members of the U.S. House and U.S. Senate, including new and returning
members, and Administration officials on the important role that lenders,
servicers, and other sectors of the NCHER membership play in helping families
and students develop, pay for, and attain their educational goals so they can
pursue meaningful and rewarding work and become contributing members of
- Serves as a
resource to assist members in financing their loan portfolios, either on a
tax-exempt or taxable basis.
- Helps support
members’ efforts to provide personalized financial education, debt management,
and default prevention services to students and families, and assists
institutions in default management, aversion, and prevention.
- Works with
NCHER’s College Access and Success Committee, Debt Management and Borrower
Support Committee, Private Loan and Consumer Finance Committee, Program
Regulations and Policy Committee, and Borrower Parity Servicer Workgroup to
advocate for priorities that are in the best interests of the respective
caucus, committee, and working group memberships.
The Caucus’ current priorities
include, but are not limited to:
- Improving the
servicing and collection of Federal Direct Loans. Such efforts include, but are
not limited to, influencing the U.S. Department of Education’s administration
of the NFP Servicer Program, which may include pressuring Congress and Federal
Student Aid to equalize terms and conditions across all federal student loan
- Influencing the
Department of Education’s regulation of third-party service providers,
including seeking answers on new, potential audit requirements from the Office
of General Counsel.
- Monitoring and
responding to the regulatory efforts of the Consumer Financial Protection
Bureau (CFPB), including anticipated action regarding federal servicing
standards for federal and private student loans and anticipated proposed rules
governing debt collection practices for federal and private student loans.
- Pushing the
Federal Communications Commission (FCC) to carry out the provisions included in
the Bipartisan Budget Act amending the Telephone Consumer Protection Act (TCPA)
to allow for the use of new technologies when contacting delinquent and
- Promoting the
availability of lower-cost private loans to students and parents, including the
ability to refinance Direct Loans. Such efforts include, but are not limited to:
o Repealing preferred lending list requirements or
exempting state-based or nonprofit entities from the
law’s preferred lending
o Mandating that Direct Loan borrowers receive accurate
disclosure of the cost of their loans and permitting private lenders to remove
the defaulted record upon the rehabilitation of a private education
o Allowing certain student loan organizations to issue
private student loans.
o Permitting private lenders to remove the default
record upon the rehabilitation of a private education
loan to help struggling
borrowers avoid the ongoing stigma of default.
proposals that would prevent federal student loans from having an unfair
advantage over private loans and/or prevent over-borrowing of federal loans,
particularly in the PLUS program.
- Securing funding
for personalized financial education, debt management, and default prevention
services to students and families, and assisting institutions in default
management, aversion, and prevention.
- Streamlining the
myriad of repayment plans available to student and parent borrowers, including
creating a single income-based repayment plan for all Stafford and Grad PLUS
- Ensuring that Federal
Family Education Loan Program (FFELP) and Federal Direct Loan borrowers are
treated equally in all program- or servicing-related aspects, including recent administrative
changes to the Servicemembers Civil Relief Act (SCRA).
- Determining the
feasibility of proposals seeking to provide the private sector with a greater
role in the federal student loan program.