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Monday, June 22, 2015

CFPB Report Finds 90% Of Student Loan Borrowers Who Seek Co-Signer Release Are Denied

Last year, the Consumer Financial Protection Bureau brought our attention to a relatively new phenomenon in which more and more private student loan borrowers found themselves placed in automatic default – even if they were up-to-date on payments – when their co-signer died or filed for bankruptcy. While the agency and consumer advocates urged these borrowers to seek co-signer release from their lenders, a new report finds that’s simply hasn’t been possible.

In fact, nearly 90% of consumers who have applied for a co-signer release from their private student loan lender were rejected because of unfair industry practices.

That figure is based on the CFPB’s mid-year report [PDF] which analyzes more than 3,100 complaints and more than 1,100 debt collection complaints filed between October 2014 and March 2015 related to private student loans, as well as an analysis of lender policies and contracts.


1 comment:

Anonymous said...

I was instructed to tell people the same thing working for a local slumlord. Once they legally have your @$$ on the line they won't give you up, and that's anywhere.