Federal student loans after death
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Anonymous
| Are the loans completely forgiven or if the borrower has bank accounts, a house, car etc. in their name, will they try to recover it? |
Anonymous
| creepy post |
Anonymous
| I believe federal loans are insured and thus forgiven (confident of that for Stafford loans). |
Anonymous
| Federal student loans in your name only are forgiven. |
Anonymous
This never consolidate student loans with a spouse. |
Anonymous
Ditto. DH's student loans were forgiven when I provided his death certificate. |
Anonymous
| Not a morbid post at all due the the large amount of student loan debt out there. Student loan debt is turning into life-time debt. |
Anonymous
| If you co-sign you will be liable. See Suze Orman's web site. Get term life insurance on your child in the amt of the loan. Just in case- prudent not creepy. |
Anonymous
| Are private student loans forgiven upon death? |
Anonymous
Not at all. You often see people post here saying their spouse is very sick/terminal/dying. Why not ask some tough questions here? |
Anonymous
| Not creepy. It factors into life insurance decision making. |
Anonymous
Nope. Will come out of the estate. You can plan carefully though--many things pass outside of probate and therefore are not part of the estate and subject to creditors. |
Anonymous
| I have heard that student loans are forgiven if either parent dies, even one who has not signed for a student loan. Can this be the case? |
Anonymous
| No. |
Anonymous
|
Three years after her son’s death, a 61-year-old Michigan woman is still on the hook for his student loans — and a Change.org petition she started now has nearly 200,000 signatures demanding the companies forgive the loans and change their policies.
Jermaine Edwards went to college to study music production, and his mother, Ella, agreed to cosign his student loans to help him attend school. However, Jermaine died of natural causes in 2009 at age 24, leaving his mother responsible for the loans. SHOWS: Good Morning America [ Edited to comply with copyright laws. ] |