2021 Colorado Code
Title 5 - Consumer Credit Code
Article 20 - Colorado Student Loan Servicers
Part 2 - Private Student Education Lenders
§ 5-20-208. Total and Permanent Disability of the Private Education Loan Borrower or Cosigner

1. For any private education loan issued on or after June 29, 2021, a private education lender, when notified of the total and permanent disability of a private education loan borrower or cosigner, shall release any cosigner from the obligations of the cosigner under a private education loan. The lender shall not attempt to collect a payment from a cosigner following a notification of total and permanent disability of the private education loan borrower or cosigner.
2. A lender shall, when notified of the total and permanent disability of a private education loan borrower, discharge the liability of the private education loan borrower and cosigner on the loan.
3. After receiving a notification described in subsection (2) of this section, the lender shall not:
   1. Attempt to collect on the outstanding liability of the private education loan borrower or cosigner; or
   2. Monitor the disability status of the private education loan borrower at any point after the date of discharge.

4. A lender shall, within thirty days after the release of either a cosigner or private education loan borrower from the obligations of a private education loan pursuant to subsection (1) or (2) of this section, notify both the private education loan borrower and cosigner of the release.
5. A lender shall, within thirty days after receiving notice of the total and permanent disability of a private education loan borrower pursuant to subsection (1) of this section, provide the private education loan borrower an option to designate an individual to have the legal authority to act on behalf of the private education loan borrower.
6. If a cosigner is released from the obligations of a private education loan pursuant to subsection (1) of this section, the lender shall not require the private education loan borrower to obtain another cosigner on the loan obligation.
7. A lender shall not declare a default or accelerate the debt against the private education loan borrower on the sole basis of the release of the cosigner from the loan obligation due to total and permanent disability pursuant to subsection (1) of this section.

History. Source: L. 2021: Entire part added,(SB 21-057), ch. 378, p. 2523, § 5, effective June 29.