February 27, 2013 202.224.7433
SCHUMER: AFTER TRAGIC DEATH OF A CHILD, PARENTS SHOULD NOT BE FORCED TO PAY REMAINDER OF STUDENT LOAN DEBT– WILL LAUNCH PLAN TO REQUIRE PRIVATE LOAN COMPANIES TO FORGIVE DEBT AFTER DEATH OF STUDENT BORROWERS, JUST LIKE FEDERAL LOANS
In 2010, Syracuse-Native Andrew Prior Was Tragically Killed By Drunk Driver In Boston Hit-And-Run—It Took Two Years & Schumer’s Intervention Last Week to End Financial & Emotional Hardship and Get Debt Forgiven
Schumer Will Reveal Plan to Introduce ‘Andrew’s Law’ to Require Private Student Loans to Be Discharged if Borrower Dies, Ensuring Parents Aren’t Held Liable for Debt — New Requirement Needed to Prevent Some Private Loan Providers From Hounding Grief-Stricken Parents
Schumer: Student Loan Debt Is One Burden Grieving Parents Shouldn’t Have to Bear
Today, February 27th at 12:30 PM during a press conference call, U.S. Senator Charles E. Schumer will reveal original legislation called Andrew’s Law, in honor of his constituent Andrew Prior who was tragically killed by a drunk driver shortly after graduating from college. Andrew Prior had one federal loan and three outstanding private student loans at the time of his death, which were passed on to Andrew’s parents, Mr. and Mrs. Prior. The federal loan and two of the private loans were forgiven shortly after Andrew’s passing, yet it took over two years, and Schumer’s aggressive intervention last week, for the private asset manager and the loan servicer to forgive the remaining student loan debt. While it is common practice for federal student loans to be forgiven or discharged in the event that the borrower dies, this practice is not required of private loan companies. Schumer’s proposal would change that and help ensure that the unnecessary financial and emotion strain put on the Prior family is not repeated.
On the call, Schumer will unveil the details of his legislation, which would require that private student loans be discharged if the borrower dies, ensuring that parents who had co-signed the loan are no longer held liable for the debt. Currently, all federal student loans are required to be fully discharged if a family member or other representative provides a certified copy of the death certificate to the lender or loan servicer. Schumer’s legislation would apply the same treatment for all private student loans.
DATE: TODAY, Wednesday February 27th
TIME: 12:30 PM