Larsen's bill, the Bereaved Borrowers' Bill of Rights Act of 2014, is designed to protect grieving students and students facing family hardship from auto-defaulting on their private student loans and to get better access to information about cosigner release requirements. The bill also prohibits lenders from reporting an auto-default as a result of cosigner death or bankruptcy to credit reporting companies and stops these companies from including this information on their reports.
"The last thing students grieving the death of a loved one should have to deal with is default on a loan they are paying on time," Larsen said. "One of my top goals is to break down barriers for all people to fully participate in our economy and democracy. But full participation isn't happening when students who have been making timely loan payments are suddenly kicked into default for reasons not in their power."
"Students who have invested in their education by taking out loans and pursuing degrees should be treated fairly every step of the way, including by private lenders. And students should not be hit with marred credit records that could haunt them for years because of circumstances they can't control.
"My bill gives students time to figure out a path forward with their loans and it requires private loan companies to be more transparent. Today's students are juggling a lot, from rising tuition costs to a highly competitive job market. My bill makes sure that unfair and harmful auto-defaults are not on this list," Larsen said.
Local universities are getting behind the bill, including
The bill has eight original cosponsors, including Reps.
A fact sheet on the bill can be found here http://larSen. house.gov/sites/larSen. house.gov/files/documents/Bereaved%20Borrowers%20Bill%20of%20Rights%20Fact%20Sheet%20for%20WEB.pdf.
Read this original document at: http://larsen.house.gov/press-release/larsen-introduces-bill-protect-bereaved-student-borrowers
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