Death Tax

After Co-Signer Dies, Many Private Student Loan Borrowers Forced to Immediately Pay Balance

After Co-Signer Dies, Many Private Student Loan Borrowers Forced to Immediately Pay Balance
Some student loan borrowers who had a parent or grandparent co-sign the note are finding that they must immediately pay the loan in full if the relative dies. The Consumer Financial Protection Bureau says lenders have clauses in their contract that explain this could happen, but many borrowers are not aware of them. The agency's ombudsman, Rohit Chopra, said complaints related to this issue are growing more common because the practice is catching so many consumers by surprise.
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Kimberly Hefling
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