The Consumer Financial Protection Bureau has kicked off a newinitiative it hopes will provide alternative repayment andrefinance options for borrowers struggling to repay private studentloans.

The CFPB released a Notice and Request for Information in theFederal Register on Thursday and said it will use the informationto develop recommendations for policymakers.

“Too many private student loan borrowers are struggling withunwieldy debt that prevents them from climbing the economicladder,” said CFPB Director Richard Cordray. “We will be analyzingplans for policymakers to consider that might help avoid a repeat of the mortgage meltdown for today's student loanborrowers.”

Through April 8, the CFPB will collect input on a variety ofissues related to repayment affordability, including:

• How student loan burdens might impact the broader economy andhinder access to mortgage credit and automobile loans;
• How distressed borrowers manage their student loanobligations;
• What options currently exist for borrowers to lower theirmonthly payments on private student loans;
• Examples of successful alternate payment programs in othermarkets and which features could apply to this market; and
• The most effective mechanisms for communicating with distressedborrowers.

The bureau is encouraging financial institutions, colleges anduniversities, professional associations representing healthprofessionals and educators, housing finance experts, students, andfamilies to submit comments. Instructions regarding how commentscan be submitted electronically are posted on the CFPB's website.

The announcement follows an October 2012 report the CFPB StudentLoan Ombudsman sent to the Secretary of the Treasury, the Secretaryof Education, the CFPB director and Congress that said borrowershave trouble negotiating affordable repayment plans with privatestudent lenders and servicers.

In July 2012, Cordray and Secretary of Education Arne Duncansubmitted a report to Congress that revealed more than $8 billionin defaulted private student loan balances representing 850,000distinct loans. Unlike distressed borrowers with federal studentloans, private student loan borrowers generally do not havelong-term forbearance, income-based repayment, or rehabilitationoptions if they default.