This week, U.S. Senator Lautenberg introduced legislation  to require lenders to make clear the obligations of co-signers in the event of a student’s death.

The Christopher Bryski Student Loan Protection Act is the culmination of a multi-year battle fought by the Bryski family. In July 2006, Christopher Bryski died at the age of 25. Today, his parents continue to make monthly payments on the $44,500 in private student loans that Mr. Bryski took out to attend Rutgers University.

The Act introduced this week would require lenders to provide students and parents with more information about what happens to loans in the event of death.

Federal student loans can generally be discharged if a student dies or becomes permanently disabled, however, private student lenders  are not required to discharge loans in the event of death or disability, leaving co-signers, typically parents, on the hook for the balance.

The House passed its version of the bill in September, and the nearly-identical Senate version, which does not have funding attached, is also expected to pass, according to people familiar with the legislation. A compromise between lawmakers and industry groups, the current version would not require lenders to discharge private student loans. However, it would require all private lenders, to define the obligations of the co-signer, typically a parent, in the event of the student’s death or disability, and to provide information on power of attorney.

The Senate version of the bill designates the new Consumer Financial Protection Bureau as the agency responsible for handling the issue. Final approval will be needed in the House after Senate passage before it can be signed into law.