Back to school! S.2155 amendments to private student loans
Greetings Compliance Friends! School is back in full swing up here in the nation’s capital, and unfortunately so is morning rush hour.
While the NAFCU compliance team can’t do much to help with your morning commute, we can offer some things to keep in mind when it comes to new private student loans.
The Economic Growth, Regulatory Relief, and Consumer Protection Act, (S.2155) was signed into law in May 22, 2018 and brought several amendments to the Truth in Lending Act (TILA), including some new protections for members and cosigners with private student loans. Section 601 of S.2155 added provisions to TILA which will prohibit the credit union’s ability to declare a default or accelerate the debt of a member’s private student loan in the event of a member’s death or bankruptcy. If a member dies with a remaining private student loan balance, the new provision also requires the credit union to release any cosigners from the obligation. Here’s a brief excerpt of the relevant language:
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