Senate Introduces Legislation for Clarification of Co-Signer Terms
Yesterday, Senator Frank Lautenberg (D -N.J.) introduced the “Christopher Bryski Student Loan Protection Act,” a bill intended to require private student loan lenders to clarify co-signer obligations in the event that a borrower dies with outstanding loans. The bill is an amendment to the Truth in Lending Act and the Higher Education Act of 1965.
A version of the bill has already passed in the House, and this version is expected to pass in the Senate, according to a recent article published by The Wall Street Journal online. The bill doesn’t require lenders to discharge the loans upon death; it requires that lenders clarify co-signer obligations regarding what happens to the loan after a borrower dies. The bill also requires that loan agreements provide information on power of attorney.
The bill is named after Christopher Bryski, who died in 2006 after having been left in a vegetative state for two years due to an accident. When Bryski died, he had $44,500 in student loans outstanding. His parents were co-signers and have been making the monthly payments on his loans.
Read the full article in its entirety: Student Loans: Legislation to Clarify Co-Signer Obligations