Does a spouse have to repay student loans after the person with the loans dies?

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The student loan should be paid out of the estate of the deceased before it is distributed to the spouse. If there isn't enough to cover the debt, the spouse should not be held responsible for the balance, unless both people signed the loan.

Many people misunderstand who pays the outstanding debt. The surviving spouse does not pay the debt, but it comes out of the estate before distribution.
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Is the cosigner of a loans spouse responsible for a college loan if he dies?

Answer . The only persons' responsible for a loan are signers of the contract who accepted legal liability. If a signor dies, their estate may be liable for remaining debts. Whether or not this applies in your case would depend on whether there was a will and prevailing state law governing that (MORE)

Do kids have to pay federal student loans when a parent dies?

If a parent were to obtain a federal school loan for their childand the pass away , the child would not be responsible for payingit back. The loan would be discharged due to death discharge. Adeath certificate would have to be shown to prove death of theborrower.

What is the penalty of not repaying a loan?

It depends on the terms of your loan agreement, and the type of loan you're dealing with.. Generally, there aren't any criminal penalties - failure to pay a loan is a civil matter between you and the lender. That isn't to say, however, that the consequences can't be severe.. First, many loan agree (MORE)

After a co-signer on a student loan dies is their estate responsible to pay of the loan?

In the United States, if the student loan is Federal, then the answer is NO. The Dept of Education has a forgiveness provision for death of borrowers of Federally Guaranteed Student Loans. The loans would be forgiven and the estate would not be liable. The loan is the responsibility of the Stu (MORE)

What happens to student loans if the student dies?

Answer 1 . The debt is thrown out as if it never existed, it does not under any circumstances get passed on to any relatives or significant others.. Answer 2 -- A dissenting opinion . I have never heard of any lender that would walk away from a legal debt.. Unless the federal rules allow for (MORE)

Are there any grants for repaying private student loans?

PLEASE HELP TO EXPUNGE STUDENT LOAN . PLEASE PLEASE PLEASE...there must be a way to expunge a student loan that has added up to be $100,000's due to interests. it is truthfully impossible and extremely overwhelming for someone who lives pay-check-to-pay-check and struggling to even imagine this (MORE)

What if someone refuses to repay a loan?

Deadbeat borrowers - Use Small Claims . If you have any proof you loaned someone money, such as a contract, an I.O.U., an email discussing the loan, etc., and the loan is below a certain amount, you can take the person to small claims court to recover your money. Go to Google, key-in "small claim (MORE)

What happens to a student loan when the borrower student dies?

Answer . According to. www. student aid.ed.gov/ student s/attachments/siteresources/RepayingYour Student Loans English2003_04.pdf. Death of the student cancels Perkins loans, FFEL/Direct Loans. Stafford and Plus are included. Not sure about private loans.

What happens to a person who does not repay student loans?

Federal student loans have no statute of limitation, meaning they can collect forever.. The can garnish your wages without taking you to court, take your tax refund, and sue you in court for property and bank accounts.. Student loans are also almost impossible to discharge in bankruptcy.. There a (MORE)

What do you do when you can't repay payday loans?

Then it's best that you just call your lender an dlet them know you can't pay it on time. Some lenders are good with that. All I did was call them and tell them my situation. They were really easy about it and they worked with me. They let me pay them later.

Repay payday loans?

Payday loan companies are notoriously difficult to pay off because pf their extortionate amounts of interest. I was in the trap myself but am now slowly paying them off. Look at my website here http://paydayloantrap.synthasite.com/ for more information. And please do not take out another payday l (MORE)

What happens to a personal loan if the borrower dies?

If there was a co-signer on the loan, then the co-signer will be responsible for the balance of the amount still owed. If not, then the lender can sue, or place a lien on the estate of the deceased for the amount owed on the loan.

What loans are available to a person that has defaulted on a student loan?

A person in Default on student loans is not eligible for any type of Federal student aid, and probably will not qualify for Private student loans. You need to get out of Default. There are only 2 ways to get out of default on your Federally Guaranteed student loans. . Contact your collection (MORE)

Is a son's widow obligated to repay the balance on a personal loan made to him?

\nNo. Unless she also signed the promissory note, the widow is not responsible for paying her husband's debt. Joint property owned by the couple is not subject to claims of creditors. If the son had any property that was solely in his name the parents could try to attach that property by a judicial (MORE)

What happens if you fail to repay your student loans?

You have to give a assurance to the bank before you can get a loan, example your house and share certificate , or your fixed deposits equal to the loan amount or at least half the amount or your insurance papers.Failing to pay back the loan the bank keep the paper and own t he flat.

What to say to someone to repay a loan?

Try to suddenly hint to him/her that they forgot, if they used the money to buy something than a good example of a hint would be "Hey, do you remember that time that you bought that TV for your new apartment, how much was it again?" that should trigger their memories. If the situation is more that t (MORE)

If spouse cosigns a loan and dies is the other spouse responsible?

yes. don't ever cosign ans Very simply - a co-signer of a loan is responsible for absolutely everything as the "other" signer (who may be called primary signer). No difference. That is the whole point of a lender requiring a co-signer! It is because the primary applicant doesn't qualify on (MORE)

Does the surviving spouse have to repay a home equity loan if they are not listed as a borrower on the loan?

Yes in community property states and maybe in non-community property states.. If the state is a communal property state and the surviving spouse that is not a borrower had ANY benefit from the loan, that spouse is responsible for repayment (despite not being a borrowing party on the loan). If th (MORE)

How do I get a loan and then repay it?

To get a loan, one will want to use the following steps: * Price shop the type of loan that you are looking for (use the Effective Annual Rate for price comparison; you may be able to get a better price with financial institutions that you already have an account with; also, if you agree to automa (MORE)

Can you get a loan on your student loans?

If you are asking if you can take out a loan to pay off another, separate loan then the answer is, technichally, yes. However, this would be very difficult and not recommended because banks typically would not approve of loans for such a reason.

What happens if you can't repay a personal loan?

It depends on the situation. In many cases they can take you to court and get a judgement against you. That would allow the bank or other institution to seize your property ( house, cars, etc.) and sell them to raise money to repay the debt. They could also garnish your paychecks.

Do I have to repay a personal loan from a friend when there was no promissory note signed?

Yes. Even though you didn't sign a promissory note the friend may be able to show evidence that the money was loaned to you. They may win in a lawsuit. Also, you have a moral duty to repay your friend. Oral contracts between adults are binding for all except real estate sales where contracts MUST be (MORE)

What would qualify a person for loan deferment of a student loan?

The first thing that comes to mind is disability. Additionally, consider contacting the U.S. Department of Education ---- or, the particular Government agency that can consider a deferment of your loan, such as: "I'm looking for a job to pay off my student loan --- I just need time, can you help me (MORE)

Do you have to repay a federal student loan?

Everyone has to repay the federal student loans. However some people are eligible, dependent on the job that they get after graduation, to have loan forgiveness for a portion of their loan. In that case they will only have to repay the portion of the loan that is not forgiven.

What do you do if spouse died and still owes loan on a car?

It depends on your state law. In community property states, if the car was community property, the surviving spouse becomes the owner. In most other states, the surviving spouse and/or any children become the owners as heirs at law. The problem is that you may have to apply to refinance the car loa (MORE)

What companies offer personal loans for students?

Private banks like Chase, CitiBank, Sallie Mae, Bank of American, Wells Fargo, and Discover offer personal loans for students. Tri-co Federal Credit Union and Liberty Savings FCU are credit unions that offer personal loans.