Students go into default on loans
April 23 , 2014
A recent federal report revealed that some students are going into default irrespective of whether or not they've been paying their loans on time. The Washington Post notes that an obscure provision covering these loans would result in the loan going into default in case the co-signer dies.
The Consumer Financial Protection Bureau mentioned that an increasing number of complaints about this problem are being received.
"It doesn't seem that there is a thoughtful business decision," a CFPB official said. The agency couldn't provide the exact number but the issue only affects private loans.