U.S. agency urges private lenders to ease automatic default rules on student loans

Some people who pay private student loans on time are being placed in default when the co-signer of their loans dies or declares bankruptcy, the Consumer Financial Protection Bureau said in a report due out Tuesday.

These "auto defaults" force borrowers to either immediately repay the full loan balance or ruin their credit, hurting their chances of getting a job, renting an apartment or buying a car.

By Danielle Douglas

Full Story: http://www.washingtonpost.com/business/economy/us-agency-urges-private-lenders-to-ease-automatic-default-rules-on-student-loans/2014/04/21/d06adeee-c97f-11e3-95f7-7ecdde72d2ea_story.html