Does a spouse have to repay student loans after the person with the loans dies?
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.
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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%DETAILS%. Answer . No you are not responsible but if your step daughter does not pay the loan they can still repossess the vehicle..
Do you have to repay a student loan if you are a cosigner and the borrow doesn't pay it because he doesn't want to?
That is the whole idea to co-signing. Another party to collect from if the debtor doesnt/cant pay. You are the insurance policy that the loan will get repaid. AND neither the lender nor the debtor has to pay for that insurance.
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… will. For the best information, your questions would need to be directed to an attorney. (MORE)
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.
Can the cosigner of a student loan be removed from the loan after the student finishes college and has a job and the ability to repay on his own?
No, a co-signer is legally and equally obligated until the loan is paid in full or until the loan is refinanced w/o the original co-signer being a party to the action.
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…ments have "acceleration clauses" meaning that if you miss a specified number of payments, the entire balance becomes due and payable immediately. If you can't or won't pay the entire balance, your creditor can sue you for failure to pay.. The creditor will probably win, resulting in a judgment against you. This judgment could be enforced in a number of ways. The most common would be wage garnishment - basically, the creditor would be able to take a percentage of your wages until the entire debt is paid off.. If the debt is secured (a mortgage or car loan, for example), they can repossess the collateral (your house or car). If it's unsecured, they'll have to sue you and hope for the best.. Furthermore, failure to repay a loan can destroy your credit rating, making it difficult or impossible to get loans in the future. . (MORE)
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…dent, but if the student defaults on the loan it becomes the responsibility of the co-signer. If the co-signer dies before the loan is paid the student is now the only person responsible for the loan. Most lending institutions that require a co-signer do so to ensure that the loan will be paid. yup Yes. The co-signer is basically the only signer, since their credit - good name - and debt / income ratio are being used. The other person is merely piggy backing on the co-signer in an effort to improve their own credit. Signing a document for any loan is a debt, so yes - the debt would still need to be paid by whatever means available by the estate. Not likely, If the loan was in default and the cosigner had already begun paying on it, the estate MIGHT be held accountable if it were a federally funded loan. Other than the lender would NOT be able to place a claim against the deceased's estate. (MORE)
Answer . Most Loans Have An Insurance On The Person The Loan Is Made Out To. Check This Out, Get A Copy Of The Contract. If There Is Life Insurance AOn The Person That You Cosigned For, Then The Loan Should Be Paid Off By Insurance On Loan GOOD LUCK
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… a write of of the debt, then the estate [if there is one] would be held liable for repayment of the debt.. I agree with answer 1 in that the debt will not pass to relatives or a significant other, UNLESS one of those persons was a co-signer on the loan. (MORE)
Answer . \ni think you should not borrow the money because how are you going to pay back but if you have a plan to pay back go ahead and borrow
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 …loan can be paid up.. is there any attorney out there who can promise a positive outcome to such situation?. cg (MORE)
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…s court" and the name of your city and state, and you should find out more info. I just went throught this procedure to recover money from a deadbeat "friend", and I believe my local small claims court set their limit to claims involving sums below $1500.00. The court used a contract process server to alert my "freind that she was being sued, and that's all it took for her to put a check in my mailbox the next day. It cost me about $25.00 to fill out the paperwork at the court, and I had to pay the process server another $50.00. but I got my $500.00 back! Good Luck! (MORE)
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.
Your question tells me you don't have any basic financial education whatsoever. You need to learn some money basics before you even think about borrowing.
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…re people now who did not repay their student loans from the 1970s who are having their social security garnished.. Not paying is a very bad idea. (MORE)
Federal student loans do not currently have cosigners.. Parents who take out federal PLUS loans for their kids often think they are a cosigner, when they are actually the sole borrower.. All federal student loans are discharged if the student dies.
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.
A close friend of the family loaned you money a month ago and recently died what is my responsibility and who do you talk to to repay the loan?
You need to find out who the executor of the estate is. That would be the person to pay the money to. Be sure and get a receipt!
Answer . No. Your co-signer promised to pay if you didn't pay. You must repay the 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…oan (MORE)
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.
If you cosigned a private student loan for your daughter at which time she was 19yrs of age who is legally liable to repay the loan back?
If you co-signed a loan, you are fully and equally responsible for repaying it until such time as it is fully paid off or forgiven.
I would assume the loan would cancel, and no one is to pay back anything since the student is diseased and is no longer in need of the money.
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 …company or student loan servicer and request to enter the rehabilitation program. Most people qualify, but I have seen some refused when the default is over 10 years old. In the rehabilitation program, you will need to make 9-12 on-time payments in addition to your garnishment. After the 9-12 on-time payments, they should stop the garnishment, but you will stay in a default status until your Rehabed loans are sold to a new lender. In the past, that was an easy process, but in these turbulent financial times, other lenders are not buying rehabed loans. So, with this option your loans will stay in a Default status for the forseeable future. . The second way you can get out of default and have your garnishment lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will probably not release the loan for consolidation while in a garnishment stage. The good news is, there are a few companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. One good example is Default Management Services, Inc. They are the cheapest I have seen and give a 100% money back guarantee on their services. You can Google the company name to get the phone #. Ask for Doug. (MORE)
\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 …process. \n. \nIf the situation involves a considerable amount of money and the parents are not concerned with the consequences of an adverserial action involving their daughter-in-law then they should seek the advice of an attorney. (MORE)
It affects all of us that pay taxes or want to obtain student loans for us or our children. Theft of this funding for any reason should be criminal. Absolutely yes, it hurts everyone. Not paying these loans is stealing clear and simple.
In the US, you are still on the hook for the repayment of the loans, but you can apply for an unemployment deferment from your lender. With the deferment you can stop paying on your loans for up to 3 years. The interest on the unsubsidized stafford loans still accrues though.
\nIf the loan is secured, then the collateral is returned to the bank. If the loan is unsecured, like a credit card, then the bank submits the balance to the estate of the deceased.
No, but the lender can take action against you to pay back. your lender can mess up your credit.
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.
yes. When you became married all asests and liabilities became shared. This one may have bit you.
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…hey needed it for say a bet than you should confront that person and tell them that they shouldn't have spent that money on that in the first place and that you need them to pay you back, if you don't than they may hide it out of embarrassment. ______________ My dad had to do this with family members. He sends them invoices in the mail. reminding them to pay. If it's really bad, and they owe a lot of money- hire a lawyer to do it for you. It will cost you but they will know you are serious. there is no easy way. They haven't forgotten, they are avoiding the subject because they can't/don't want to pay. I am sure when they asked you for he money they were easy to get a hold of and now that it's time to repay.. no word on the subject. They are taking advantage of you and you need to get tough. You are not a free money tree, you LENT them the money and they know it. Send them a letter saying: Financial times are hard on everyone lately but we need to discuss this. As of this date, there is still an outstanding balance to be repaid to me. Please choose the best repayment plan that works for you finances. ( list 3 choices) If none of these are better for you I will assume that you can pay X amount every month and I need you to send it to me by the 1st. I was happy to help you during your time of need, but I really need this to be repaid as you promised. Please call me if we need to discuss different payment arrangements. Sincerely, you. good luck my friend. :) (MORE)
If a spouse dies what is the surviving spouses responsibility on a truck loan if it is not in her name?
Two choices - lender enters into posession to recover their debts or debts get cleared through probate via sale of the asset and/or cash from the estate. No liability on the spouse unless he/she is jointly liable as part of the original agreement.
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… their own creditability (for whatever reason) an somebody with better (frequently MUCH better credit) is needed for the loan to be made. (It makes no difference if the other person is related, or not, or working, or not, or this or that - ONLY that they have the needed credit rating to be approved for a loan on their own record. They are in fact getting a loan). EXCEPT a big difference and one of many reasons to NOT be one, is that the cosigner frequently does NOT have possession or legal control of any property involved in the loan, so using it (say selling it) to pay for the loan can be much more difficult, if not impossible. Add that to a credit professional at a lender is saying the primary does NOT qualify and it is very risky that the loan will be repaid and you see why so many keep saying - NEVER cosign for a loan. So whatever the responsibility, or recourse, (legal or financial) is for whatever action or lack of action required under the loan (and frequently under law too as many times you are considered the owner of any property connected with the loan), you are subject to also. When someone dies, the estate becomes responsible for resolving all affairs, like loans. They must use assets to pay off debts, (before anyone else gets anything). If there aren't enough to pay off the loan, then the co-signer (if there is one) is responsible. (MORE)
Only one way, have the borrower consolidate the loans without you being a cosigner. Then the original loans are paid off, and a new loan is made in only the borrowers name.
Probably not but it could happen.If the person hasn't made payments for more then 3 months then something could be done about it.
Only if you co signed for them and the child is not repaying them. The divorce has nothing to do with your obligation or lack of obligation. Your child certainly has a moral obligation to pay for loans they took out.
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…e state is a non-communal property state, the estate of the deceased spouse will first be looked to in order to provide the funds to pay off all debts. If there are enough assets to cover the debt, the loan will be paid in full, regardless of the surviving spouse's wishes as the lender's rights come before those that may be beneficiaries to any estate proceeds. If there are not enough assets to cover the loan, the lender may look to liquidate the asset (the surviving spouse's home) in order to satisfy the debt. If the home is NOT in the surviving spouse's name (either through joint tennancy or named ownership), the surviving spouse may not be able to intervene. . (MORE)
depends on the length of the loan. at what you have arranged with your bank, or loan angency
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…tic payments from a checking/savings account, the rate will also be reduced). * Apply for the loan, either online or at a branch of the financial institution you have selected (bring copies of pay stubs, bank records, etc. in order to speed the income verification process; be prepared with a good reason for getting the loan). [If the loan is approved, skip to the next bullet] * If the loan has been denied, a letter will be mailed to the address used as your home residence providing the key reasons as to why credit was denied. You may write back and get a copy of the credit report(s) that were used to make that decision. * Upon approval, the loan will be disbursed either through electronic funds transfer (EFT) to a designated checking/savings account or through a check (rare). * Within a week (unless one agreed to electronic communications) a welcome packet will be sent to the borrower, letting you know where to make your payments, when the payments are due, etc. * On a monthly basis, five days before the payment is due (if using mail) or the day before the payment is due (if using EFT), pay the agreed amount. Some banks will send you a statement indicating that a payment is due 2-3 weeks prior to the payment date (others may give you a payment book that you need to keep track of yourself). * After the term of the loan is complete (and you send in your last payment), you have successfully gotten and repaid your loan. (MORE)
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.
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.
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… written. However, there must be evidence of the oral contract. The plaintiff must be able to provide evidence that a loan was made and the defendant agreed to pay the money back. 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 written. However, there must be evidence of the oral contract. The plaintiff must be able to provide evidence that a loan was made and the defendant agreed to pay the money back. 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 written. However, there must be evidence of the oral contract. The plaintiff must be able to provide evidence that a loan was made and the defendant agreed to pay the money back. 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 written. However, there must be evidence of the oral contract. The plaintiff must be able to provide evidence that a loan was made and the defendant agreed to pay the money back. (MORE)
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…"? It has been my finding that the Government agencies, which "back-up" your loan will be able to "work with you". Just contact them --- but, whatever you do, don't "avoid" (them). This is where "default and collections" come into play. Regards. (MORE)
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.
If a student is unable to repay a loan, then he or she should first talk to their lender. This will give the person a better chance of reaching an agreement, rather than ignoring the payments and defaulting on the loan.
Student loan repayments can vary depending on the amount of your loan. It also will depend on how much you plan on paying each month. The more you pay the faster it will be paid off.
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…n, which does not pass by intestacy rules. That may require you to file an estate action to become the formal owner of the car, but it may be that the estate is bankrupt under state law. Consult an experienced estate lawyer in your area. (MORE)
Its a loan! there is interest, so paying back on time will reducethe amount of interest you have to pay back, and it can add up,sometimes even a thousand dollars.
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.