Tuesday the Consumer Financial Protection Bureau (CFPB) released a report that highlights an important complaint about student loans.
Most private student loans require a cosigner.
The Consumer Financial Protection Bureau found a big area of concern is when a cosigner dies or goes bankrupt.
That’s when some lenders demand immediate full repayment.
Students often rely on parents or grandparents to cosign private loans.
The CFPB says borrowers don't realize when something happens to the cosigner the loan goes into default and has to be paid in full.
The CFPB shares ways borrowers can remove cosigners from their loans to avoid a default:
- Click here for a sample letter on how a borrower can release a cosigner.
- Click here for a sample letter on how to be released as a cosigner.
- Click here for more information.