New legislation was introduced this week to the Senate that would require lenders and institutions to be more transparent in their student loan policies, specifically with regard to co-signer obligation in the event of the student's death, reports the Wall Street Journal.
On Wednesday, Sen. Frank Lautenberg (D-NJ) introduced the "Christopher Bryski Student Loan Protection Act," named for the Rutgers student who suffered severe brain injuries in a freak accident and died in 2006 after spending two years in a vegetative state. Bryski's brother Ryan became interested in amending the Truth in Lending Act and the Higher Education Act of 1965 when his parents were forced to take on the burden of their ailing son's private loans; they continue to pay off his $44,500 debt. Their debt to federal agencies was forgiven.
If passed, the act will force private lenders to clarify the role of co-signers in repaying loans of deceased borrowers and outline their power of attorney rights. It will also require colleges and universities to provide similar information to relevant parties, reports the Gloucester County Times.
Before it becomes law, the legislation will need approval from the Senate and the House. If enacted it will be regulated by the Consumer Financial Protection Bureau.
What do you think of this act? Let us know in the comments section.
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