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The Bureau recognizes that in any transaction involving a consumer financial product or service there is likely to be some information asymmetry between the consumer and the financial institution.
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Federal student loans are provided to students or parents meeting eligibility criteria established by Federal law and regulation such that the protections afforded by this proposed rule would be unnecessary.
Conversely, if borrowers have unusually low expenses, relative to their incomes, they would be more likely to be able to borrower under the ATR approach.
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