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Bishop Proposes Safeguards for Private Education Loan Borrowers

30 April 2014 0 views No Comment

Rep. Tim Bishop (D- N.Y.) yesterday introduced a bill to protect private education loan borrowers from automatic default if a cosigner dies or declares bankruptcy. Complaints from borrowers in such circumstances prompted the Consumer Financial Protection Bureau (CFPB) to issue an advisory and a report on this issue. Bishop’s bill would amend the Truth in Lending Act (TILA) to require lenders of private education loans to notify a borrower immediately if they deem the borrower to be in default as the result of such a situation and to provide a 90-day window during which borrower can obtain a new cosigner.


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