S-2180 : Still Just a Bill

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.