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Not-for-Profit Lender and Servicer Caucus
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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. 

Membership 

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.

Leadership 

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 document. 

Meetings and Communications 

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. 

Committees/Working Groups 

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. 

Charge 

The Caucus:

  • 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 society.

  • 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.

Advocacy Priorities

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 servicers.

  • 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 defaulted borrowers.

  • 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 list requirements.


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
                   loan.


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.

  • Considering 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 program borrowers.

  • 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.

 

 

 

 

 

 

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