H.R. 4511 · 113th Congress
Protecting Students From Automatic Default Act of 2014
- Stage
- In committee
- Sponsor
- Timothy Bishop
- Introduced
- 2014-04-29
- Latest action
- 2014-04-29 · Introduced in House
Summary
Protecting Students From Automatic Default Act of 2014 - Amends the Truth in Lending Act to require a private educational lender to notify a borrower immediately if, upon receiving notification of the death or bankruptcy of a cosigner jointly liable for the private education loan, the lender deems the borrower to be in default, changes the terms of the loan, or accelerates the loan's repayment terms.
Requires a private educational lender to give a borrower at least 90 days after such a notification to identify a new cosigner for that loan. Retains the lender's right to renegotiate loan terms based on the creditworthiness of the new cosigner.