Student Loan Trusts Settle CFPB Suit After High Court Rejection

Student loan investment trusts agreed to pay $2.25 million to resolve Consumer Financial Protection Bureau claims that they filed illegal debt collection lawsuits, after the US Supreme Court declined to hear the case.

The National Collegiate Master Student Loan Trust also agreed to stop collecting debts covered by the CFPB’s enforcement action, according to a joint stipulation filed Thursday in the US District Court for the District of Delaware.

Judge Stephanos Bibas will have to approve the settlement before it takes effect.

The CFPB sued the trusts, a collection of 15 related investment vehicles that bought and securitized student loans, ...