Home » Financial Aid, News, Scholarships, Student Loans

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.

Financial Aid News is sponsored in part by:

Leave a Reply

You must be logged in to post a comment.