Overheard Consumer Bankers Association | June 6–8, 2010, Hollywood, FL


Under new leadership the Consumer Bankers Association combined several of its annual meetings and workshops into one spring meeting. Among the 780 attendees were the bankers and lenders who still make up a considerably slimmer student loan industry. Many attendees found the wider-than-customary mix of retail banking sessions enlightening. Oth- ers did not appreciate the distraction from student loans. The entire CBA audience was polled at intervals throughout the three-day show. Responses were tabulated by immedi-


ate audience reponse technology. Highlights are sprinkled throughout. Attendees were encouraged to view contemporary lending challenges and opportunities through the generational lens of Boomers, GenX, and GenY/Millenials. The characteristics of those consumers are also sprinkled throughout.


AUDIENCE POLL: The U.S. economy 42% consider unemploy- ment to be the greatest problem facing banking and the economy...more signifi- cant than housing and gov- ernment regulation.


The politics of student lending are positive. Education is a good, worthwhile investment that costs too much. | Richard George, CEO, Great Lakes Higher Education Loan Services


No longer able to fund consumption from home equity, consumers are more conscious of ALL debt. | Scott McKain, Customer experience expert and author


Higher education customers see their cost as tuition and fees. They have no concept of add-on expenses. | Steven Clemente, Executive Director, Peterson’s


Once the student loan industry is opened to oversight by the new consumer agency, it can go anywhere. | Arthur Rotatori, Attorney, McGlinchey Stafford


Bernie Madoff is the best example of why additional government financial regulation won’t work. | Bill Posey, Republican Congressman from Florida


AUDIENCE POLL: The 2008 presidential election 54% voted for McCain 38% voted for Obama 8% didn’t vote


The pendulum swung from lenders being good guys helping people go to school to greedy guys out to fill their pockets. | John Hupalo, Managing Director, Ramirez Capital Advisors


When a GenXer in mirrored sunglasses meets a Boomer both are happy. GenX keeps his privacy. Boomer gets to look at himself. | Neil Howe, Demographer, historian and economist


After ‘gap financing’ the number 2 reason families apply for private loans is failure to meet FAFSA deadlines. | Steven Clemente, Executive Director, Peterson’s


Student loan stats at the conference Cumulative private student loan default rates have surpassed 7 percent in every vintage from 2002 to 2007. Four vintages have reached 11 percent, and may be headed higher. All are on their way up. In addition, almost 6 percent of private loans in repayment have been granted ‘forbearance.’ Source: DBRS


One of the failure points of direct lending will be that the illusory promised savings won’t materialize. Within three to five years there will be a new public/private partnership. It is inevitable. | Richard George , CEO, Great Lakes Higher Education Loan Services


Data have borne out that direct-to-consumer student loans perform poorly. | John Hupalo, Managing Director, Ramirez Capital Advisors


Is it really in a lender’s interest to loan money to freshmen students? | Steven Clemente, Executive Director, Peterson’s


For name brand banks, private student loans will be a good market, but smaller than in the past. | Mark Weadick, Managing Director, Student Loan Capital Strategies


Neither high school counselors nor colleges and univerisities will educate parents about higher education financing. | Steven Clemente, Executive Director, Peterson’s


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