Last week, the Consumer Financial Protection Bureau (CFPB) announced a proposed rule that would expand federal supervision over student loan servicers beyond larger banks to include certain nonbanks for the first time, according to a press release from the bureau. Nonbank student loan servicers that handle more than 1 million borrower accounts for either federal or private student loans would be classified as "larger participants," allowing the CFPB to monitor them for compliance with federal consumer financial laws. With this new definition, the bureau would have the authority to supervise "the seven largest student loan servicers," which manage a combined 49 million borrower accounts. The rule comes as part of the bureau's ongoing efforts to monitor and regulate the student loan industry (see our December 17, 2012, blog post for more information). For more, read the full press release.