OCC BULLETIN 2016-15
Subject: Student Lending
Date: May 9, 2016
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties
Description: New Comptroller’s Handbook Booklet
The Office of the Comptroller of the Currency (OCC) issued today the “Student Lending” booklet, a new booklet of the Comptroller’s Handbook. This booklet is prepared for use by OCC examiners in connection with their examination and supervision of national banks and federal savings associations (collectively, banks) engaged in private student lending. Private student loans are consumer loans offered to borrowers to fund undergraduate, graduate, and other forms of postsecondary education. This booklet addresses the risks in private student lending by banks and in regulatory expectations for safe and sound operations.
This bulletin makes public Chief National Bank Examiner (CNBE) Policy Guidance 2010-2 (REV), “Policy Interpretation: OCC Bulletin 2000-20—Application to Private Student Lending,” which was issued to OCC employees only on August 4, 2010. In making this guidance public today, the OCC made minor formatting and typographical adjustments. The policy guidance affirms the applicability of the fundamental principles of the Uniform Retail Credit Classification and Account Management Policy (Retail Classification Policy) to private student lending while recognizing the unique aspects of higher education financing. The policy guidance provides examples of bank practices and policies that generally would be acceptable and consistent with the Retail Classification Policy, including in-school deferment; providing six-month grace and extended grace periods immediately after graduation or withdrawal from school; and loan modifications for long-term hardships.
For further information, contact Maribeth Phillips, Retail Credit Risk Specialist, at (202) 649-6670.
Grace E. Dailey