Proposed Bill Would Eliminate Automatic Default For Private Student Loans

Parents Forum
1

<p>“Between finding a job, finding a place to live, paying bills, and generally being an adult for the first time in their lives, many recent college graduates face a slew of challenges. One thing they shouldn’t have to think about is automatically defaulting on a student loan when a co-signer dies or files for bankruptcy. Today, legislators proposed a bill to protect consumers from getting stuck in this trap.” …</p>

<p><a href=“Proposed Bill Would Eliminate Automatic Default For Private Student Loans – Consumerist”>http://consumerist.com/2014/05/01/proposed-bill-would-eliminate-automatic-default-for-private-student-loans/&lt;/a&gt;&lt;/p&gt;

2

<p>I would vote yes.</p>

3

<p>Private loans are a bad deal all the way around. From a public policy perspective, they should be made harder to obtain.</p>

4

<p>Apparently the lenders do this so they can claim part of the estate of a deceased person, before the estate is settled. It would be an interesting side effect if there was a strong incentive to have your elderly great-grandmother co-sign your loans.</p>