U.S. Representative John Adler (D-NJ) recently introduction legislation that would require higher education institutions to provide information to student loan borrowers about the benefit of creating a power of attorney or living will for financial, legal, and medical decision making in the event of the death, incapacitation, or disability of the signer or cosigner.

The new legislation (H.R. 5458) would cover both private and federal loans. In addition the bill would require any private education lender to clearly define the borrowers’ obligation, including the effect the death, incapacitation or disability of the signer or cosigner would have on any such obligation.  Finally if there is a cosigner the private educational lender would have to discuss the benefit of credit insurance that would protect the signer and any cosigner in the event of death, incapacitation or disability.

The bill has been referred to the U.S. House Financial Services and Education and Labor Committees.