CBA says new student-loan law may increase delinquencies

Changes to the student-loan program that were approved along with health care reform should result in more Pell grants for students, but banks stand to lose millions as a result. The Consumer Bankers Association is predicting big problems for the program's 19 million borrowers as well. "Borrower delinquency and defaults will skyrocket due to poor customer service," the CBA said. "Borrowers who are unable to get straight answers to their questions about deferments and repayment obligations are more likely to default on their loans."

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