The CFPB is monitoring the ability of lenders to force a default on a private student loan when a co-signer dies or files for bankruptcy, said Rohit Chopra, the CFPB's student loan ombudsman.

CFPB Raises Red Flags on "Auto-Defaults" for Student Loans

The Consumer Financial Protection Bureau is raising concerns about a caveat in private student loan contracts that allows lenders to automatically put a borrower in default when a co-signer faces certain kinds of hardship.

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