New Legislation Proposed to Bring More Transparency to Student Loans

U.S. Senator Frank Lautenberg from New Jersey has introduced new legislation aimed at bringing more transparency to the student loan process for students, their parents, and other loan co-signers. This bill is named after former Rutgers University college student Christopher Bryski who suffered a brain injury during his third year at Rutgers and passed away, leaving behind his student loans for his parents to take care of.

The “Christopher Bryksi Student Loan Protection Act” would make sure that everyone involved in the student loan application process would be made aware of their duties to repay the loan, including in the event of a student’s death. Federal loans are often forgotten upon a student’s death, but many private loans are not. The Bill would require private lenders to clearly define the obligations of the cosigner and provide information about power of attorney should a student be rendered incapacitated. The bill would also require colleges to provide information about power of attorney and loan forgiveness rules to both students and co-signers of student education loan.

Back in 2005 Bryski was injured in a recreational accident and spent the next two years in a vegetative state. During that state his parents struggled to make financial decisions on his behalf and were surprised to learn about their financial responsibilities in regards to Chris’ best student loans. To help alleviate any future instances of this nature, Senator Lautenberg has introduced this bill so that other families will know about their financial responsibilities when entering into a private student loan. The bill has received support from the Brain Injury Association of America, the National Association of State Head Injury Administrators, and the Brain Injury Association of New Jersey, so hopefully it will receive the support of the government as well and be passed into law.

By http://www.classes2careers.com