Financial literacy panel talks private student lending

The Financial Literacy and Education Commission, meeting Wednesday, discussed higher education and tools that can help students understand their financial aid options, including private student lending that some credit unions offer.

“One of the clearest ways to grow and strengthen the middle class is to expand access to higher education,” Treasury Secretary Jack Lew said in his remarks to the commission. “Workers who get an education beyond high school are more likely to be employed, earn higher wages, and rise up the economic ladder.”

Education Secretary Arne Duncan and CFPB Director Richard Cordray also gave remarks during the meeting. Two different panels made up of representatives from education-focused organizations, government entities and universities discussed the costs and benefits of going to college and how to improve information given to student loan borrowers, and the various resources, choices and options available to students.

“Credit unions have long been on the cutting edge of financial education,” said PJ Hoffman, NAFCU’s regulatory affairs counsel. “They take that extra step to ensure that their members are financially educated and get the information they need to accomplish their individual goals.”

NAFCU sent a comment letter to the CFPB last year regarding financial literacy and the quality financial education credit unions provide to their members and potential members.

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