Bill Text: NJ AR58 | 2016-2017 | Regular Session | Introduced
Bill Title: Urges Congress to enact "Christopher Bryski Student Loan Protection Act."
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2016-06-16 - Filed with Secretary of State [AR58 Detail]
Download: New_Jersey-2016-AR58-Introduced.html
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
SYNOPSIS
Urges Congress to enact "Christopher Bryski Student Loan Protection Act."
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Assembly Resolution urging the United States Congress to enact the "Christopher Bryski Student Loan Protection Act."
Whereas, Christopher Bryski, a Rutgers University student from Marlton, New Jersey, sustained a severe traumatic brain injury in 2004 during his third year of enrollment at Rutgers; and
Whereas, Christopher, who was 23 years old at the time of his accident, spent two years in a coma before passing away on July 16, 2006 at the age of 25; and
Whereas, While mourning the loss of their son, Christopher's parents, who had co-signed Christopher's private student loan, were informed by the private lender that the loan was in default and that they were obligated to immediately repay tens of thousands of dollars; and
Whereas, Although federal student loans are automatically canceled and the debt is discharged in the event of the borrower's death, the same liability protection is not always provided for private student loans; and
Whereas, Nothing under federal law currently prohibits private lenders from immediately collecting a student loan or declaring the loan in default in the event of the death or total incapacitation of a loan borrower or co-signer; and
Whereas, According to the federal Bureau of Consumer Financial Protection Student Loan Ombudsman (bureau), more than 90% of all new private student loans are co-signed, and private student loan companies release co-signers from the obligation to repay student loans in less than 1% of cases; and
Whereas, Currently pending before the United States Congress, H.R.3474 and S.1958, known as the "Christopher Bryski Student Loan Protection Act" or "Christopher's Law," would provide heightened transparency to the student loan process by mandating additional disclosures and protections for students and co-signers in the event of a student's severe injury or death; and
Whereas, Under "Christopher's Law," a private educational lender must clearly and conspicuously describe, in writing, the co-signer's obligation with respect to the loan, including the effect the death, disability, or inability to engage in any substantial gainful activity of the borrower or any co-signer would have on the loan obligation; and
Whereas, "Christopher's Law" also prohibits a private lender from taking any adverse action against the borrower or loan co-signer based on the death, disability, or inability to engage in any substantial gainful activity, or bankruptcy of the borrower or co-signer. Those adverse actions would include declaring a loan in default, accelerating a loan obligation, increasing the interest, or altering any obligations in a way that is adverse to the borrower or co-signer; and
Whereas, "Christopher's Law" also directs the bureau to establish criteria which, if met by the borrower of a private student loan, requires the private lender to promptly release any co-signer from the obligations under the loan without requiring any action on behalf of the borrower; and
Whereas, Under the proposed federal law, a private student loan lender would be required to provide the borrower an option to designate an individual to have the legal authority to act on behalf of the borrower with respect to the private loan in the event of the borrower's death, disability, or inability to engage in any substantial gainful activity; and
Whereas, Families enduring the devastating loss of a loved one should not have to also suffer the indignity of financial hardship because of significant student loan debt. Private lenders must take measures to ensure that borrowers and co-signers are fully informed of their loan obligations, and must be prohibited from taking adverse actions in the event of the death or severe injury of the borrower or any co-signer; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House urges the United States Congress to enact H.R.3474 and S.1958, known as the "Christopher Bryski Student Loan Protection Act" or "Christopher's Law," to provide heightened transparency to the student loan process by mandating that private lenders provide sufficient disclosures and protections for student borrowers and co-signers. "Christopher's Law" requires private educational lenders to clearly and conspicuously describe, in writing, the co-signer's obligation with respect to the loan, and prohibits a private lender from taking any adverse action against the borrower or co-signer based on the death or severe injury of the borrower or co-signer.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.
STATEMENT
This resolution urges the United States Congress to enact H.R.3474 and S.1958, known as the "Christopher Bryski Student Loan Protection Act" or "Christopher's Law" to provide heightened transparency to the student loan process by mandating that private lenders provide sufficient disclosures and protections for students and co-signers. "Christopher's Law" requires private educational lenders to clearly and conspicuously describe, in writing, the co-signer's obligation with respect to the loan, including the effect the death or severe injury of the borrower or any co-signer would have on the loan obligation. The proposed law also prohibits a private lender from taking any adverse action against the borrower or co-signer based on the death or severe injury of the borrower or co-signer.
Christopher Bryski, a Rutgers University student from Marlton, New Jersey, sustained a traumatic brain injury in 2004 during his third year of enrollment at Rutgers. Christopher, who was 23 years old at the time of his accident, spent two years in a coma before passing away on July 16, 2006 at the age of 25.
While mourning the loss of their son, Christopher's parents, who had co-signed Christopher's private student loan, were informed by the private lender that the loan was in default and that they were obligated to immediately repay tens of thousands of dollars. Nothing under federal law currently prohibits private lenders from immediately collecting a student loan or declaring the loan in default in the event of the death or total incapacitation of a loan borrower or co-signer.
