S.2180 - Christopher's Law115th Congress (2017-2018)
|Sponsor:||Sen. Menendez, Robert [D-NJ] (Introduced 11/30/2017)|
|Committees:||Senate - Health, Education, Labor, and Pensions|
|Latest Action:||Senate - 11/30/2017 Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (All Actions)|
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Summary: S.2180 — 115th Congress (2017-2018)All Information (Except Text)
Introduced in Senate (11/30/2017)
Christopher Bryski Student Loan Protection Act or Christopher's Law
This bill amends the Truth in Lending Act to require a private student loan lender to disclose clearly and conspicuously in writing a cosigner's obligations regarding a private student loan. The Consumer Financial Protection Bureau (CFPB) must publish a model form for such disclosure.
The bill prohibits a private student loan lender from taking an adverse action against a borrower (e.g., placing a loan in default or accelerating a loan balance) upon a cosigner's death, disability, or bankruptcy. It also prohibits adverse actions against a cosigner for a borrower's death, disability, or bankruptcy.
The CFPB must establish and a private student loan lender must disclose criteria for releasing a cosigner from a private student loan obligation.
A private student loan lender must also:
- provide prompt notice of a cosigner's release;
- allow a borrower to designate a legal representative to make decisions upon the death or disability of such borrower; and
- ensure a borrower and cosigner receive comprehensive counseling on the terms, conditions, and responsibilities of a private student loan.
Additionally, this bill amendsthe Higher Education Act of 1965 to expand the required elements of entrance counseling for a federal student loan borrower to include:
- conditions for loan discharge upon the death or disability of a borrower,
- options for loan repayment and forgiveness upon the death or disability of a borrower or cosigner, and
- obligations of a borrower or cosigner upon the death or disability of a borrower.
It requires clear and conspicuous disclosure of a student's option to designate a legal representative to make decisions about a federal student loan upon such student's death or disability.