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If a parent were to obtain a federal school loan for their child and the pass away , the child would not be responsible for paying it back. The loan would be discharged due to death discharge. A death certificate would have to be shown to prove death of the borrower.
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∙ 9y ago
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Does a cosigner have to replay a federal student loan if the student dies?
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.
If a parent dies with unpaid student loans does the child inherit the debt?
No! Probate Court or the student loan provider may look to some of the asets that your parent may have left behind to satisfy the student loan. But you cannot be made personally liable for your parent's studnet loans unless you co-signed for them.
If you have outstanding student loans and die is the estate charged for the student loans?
Actually, that's not true - student loans are forgiven when the student dies.
What happens to federal parent plus loans when the parent dies?
If the parent who obtained a Federal Parent PLUS loan passes away, the loan is typically discharged and the remaining balance is forgiven. The student borrower would not be responsible for repaying the loan in this situation.
Do they wave a student loan if you die?
In the United States, if a student dies with outstanding federal education loans, those loans are typically waved and the debt disappears. However, if the loans were through private institutions, the loans may or may not be waved depending upon the individual bank or credit union's rules.
If a student dies are the Stafford debts forgiven or passed on to the family?
If in case of death or total and permanent disability of the student Stafford Loans are completely forgiven.
When a widowed parent dies in California are the children responsible for the debt owed by deceased parent for loans credit cards taxes etc?
When someone dies in CA the relatives of that person are NOT responsible for the debts owed by that person. The credit cards and loans would like you to think you owe the money, but you don't.
If student dies who is responsible to pay student loans?
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.
If someone dies while they still owe student loans can the government take the money from life insurance policy?
In most cases student loans include a clause that cover the event of the person's death, usually by having the loan written off completely. You should doublecheck the loan agreement for what happens if the person dies, just in case it unfortunately does occur.
Is a co-signer responsible for the loan if the main borrower dies?
Generally, yes. That is generally the purpose of requiring a co-signer for any loan. In the US, the answer may be no if the loans are federally guaranteed student loans. Once the borrower dies, the government will forgive the loans. Contact the Ombudsman's office with the Department of Education.
What happens to a student loan when the borrower student dies?
According to www.studentaid.ed.gov/students/attachments/siteresources/RepayingYourStudentLoansEnglish2003_04.pdf Death of the student cancels Perkins loans, FFEL/Direct Loans. Stafford and Plus are included. Not sure about private loans.
When custodial parent dies does noncustodial parent get custody?
Yes, they do.
