Most borrowers who seek to have a co-signer released from a private student loan are turned down by their lender, according to a new reportby the Consumer Financial Protection Bureau.
The major lenders rejected 90 percent of requests for co-signer release made over the course of a year, says the report. The lenders’ refusal left both borrower and co-signer vulnerable to financial distress and credit damage, it says.
“Parents and grandparents put their financial futures on the line by co-signing private student loans to help family members achieve their dream of higher education,” said the bureau’s director, Richard Cordray.
Read more at The Chronicle of Higher Education: https://chronicle.com/article/Federal-Watchdog-Criticizes/230997
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