Schumer: Forgive loans when students die
Bill would forgive student debts upon their death
March 16, 2015 Updated: March 16, 2015 11:12 p.m.
1of2Lauren Tanski, Sept. 25, 2012, in Albany N.Y. (Courtesy Patrick Dodson)Patrick DodsonShow MoreShow Less
2of2Buy PhotoU.S. Senator Charles Schumer (John Carl D'Annibale / Times Union archive)John Carl D'AnnibaleShow MoreShow Less
When Lauren Tanski was murdered, her grieving parents faced an unexpected burden: calls from a private loan company demanding payment of her student loans.
While federal student loans are automatically forgiven if a student dies, the same does not hold true for private-sector loans.
U.S. Sen. Chuck Schumer said Monday he will vigorously pursue legislation this year to require student loans be forgiven if a child dies.
"The student borrower is not just a data point. This is someone's child who is taken from them," he said. "There should be no room for bad actors to hound grief-stricken parents."
Schumer held a news conference Monday on the legislation at the Leo O'Brien Federal Building in Albany. He was accompanied by Leonard and Linda Tanski of Colonie, Lauren's parents.
Lauren Tanski was killed in January 2013, and her roommate's ex-boyfriend, Henry Dolliole, is charged with the crime. In January 2014, a judge ruled that Dolliole was not mentally competent to stand trial.
Their daughter had $30,000 in federal student loan debt that was forgiven, Schumer said. But she also had $60,000 in private loans with insurer Sallie Mae, and the Tanskis found themselves getting calls to pay up.
The Tanskis reached out to Schumer, who said he was able to get the private insurer to forgive the loans after a few months of trying.
A spokesman for Sallie Mae, Rick Castellano, said under some circumstances student loans are forgiven.
"Since 2009, Sallie Mae has provided loan forgiveness when the primary borrower of a Sallie Mae Smart Option Student Loan — our private education loan — dies or becomes permanently disabled.," he said in an emailed statement.
Schumer said Sallie Mae and Wells Fargo are better about forgiving loans than other private lenders.
Like many parents, Schumer said, the Tanskis had co-signed the loans. Most students need a parent to co-sign a loan, he said, because children usually do not have enough credit history to get a loan by themselves.
While such deaths are infrequent, Schumer said the Tanskis' case is not unprecedented. In 2010, he said, he heard from the family of Andrew Prior of Syracuse with the same dilemma. Their son had been killed by a drunken driver. In that case, he said, it took two years to get the loans forgiven. Schumer introduced a bill then that did not pass the Senate. He said the insurance industry fought the bill, but he has since heard their opposition has waned.
tobrien@timesunion.com • 518-454-5092 • @timobrientu