The CFPB recently sent letters to select private student loan lenders and servicers inquiring about their current and planned loan modification options. The letter is a follow-up to a meeting last year convened by CFPB Director Richard Cordray and Education Secretary Arne Duncan to discuss ways for industry participants to offer more options, such as modified repayment plans, to help borrowers avoid default and increase the likelihood of full repayment. Federal financial regulators have offered repeated guidance encouraging industry to pursue these workout arrangements, and they have noted that they will not criticize financial institutions even if these loan modifications lead to adverse credit classifications, CFPB Student Loan Ombudsman Rohit Chopra said in the correspondence. “While certain market participants have ...