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Richard Cordray

Phillip Shrotman: Parents' student loan trap

Parents and grandparents who signed on to their kids' private student loans are having trouble getting out of them, even when their student is successfully paying back the debt, a new report suggests. About 90 percent of co-signers who applied to be released from a private loan were rejected, according to a Consumer Financial Protection Bureau review of more than 3,100 complaints about private student loans. Student borrowers often can't qualify for a private loan without a co-signer, and even if they do, a more credit-worthy co-signer could give them access to a lower interest rate. "Parents and grandparents put their financial futures on the line by co-signing private...

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