Federal Loans and Mortgages

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

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2014-10-07 02:13:58
2014-10-07 02:13:58

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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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.

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Actually, that's not true - student loans are forgiven when the student dies.

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it appears that at least the Federal student loans will be cancelled upon notice of the borrower's death. ?Death of the Borrower. If a former student borrower dies, the executor -- the person who collects and distributes the property left at death -- can cancel any federal student loan.?

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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.

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Typically there are only a few ways federal loans can be written off or dismissed. Death or being permanently disabled are a couple of them. If a parent dies, the PLUS loan in their name will be dismissed. No one will need to make payments on it any longer. If his has happened, be sure to notify the lender for the loan what has happened. They will likely ask for documentation of the death.

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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.

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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.

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If in case of death or total and permanent disability of the student Stafford Loans are completely forgiven.

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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.

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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.

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No. Your co-signer promised to pay if you didn't pay. You must repay the loans.

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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.

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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.

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the safe bet is to call them about it. I would assume no though because that's how it works with federal loans and such. there is probably some legal work that needs to be done with sallie Mae for sure so contact them. im sorry for anyone's loss.

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the animal will be confused as to where the parent is but over time will get used to not having a parent

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In most cases no, because student loans offer advantages that many other types of loans do not have. For example, in a number of cases, student loans can be forgiven (e.g., for certain jobs, or when the person who owes the loan dies, the student loan is forgiven). In most cases (depending on your tax bracket, other expenses and loans, etc.), it would be better to invest the money (e.g., in a tax-deferred plan, in real estate, etc.) or to pay off other loans, especially those with high interest rates and/or that are not tax-deductible. Of course, many factors have to be considered before making a final decision about this, such as opportunity costs, interest rates, if you have dependents, etc. <a rel="dofollow"href="http://www.studentauto1insurance.com" rel="dofollow">student car insurance</a>

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Then the other parent has to take care of the nest.

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A true daemon process is disconnected from its parent, so it won't receive a kill signal if the parent dies. It becomes an independent entity after startup.

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If the student dies, the loan dies with him/her. It's all in the fine print of the Master Promissory Note.

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what happens if a parent dies and he still owes arreaers in child support? Is his current wife responsible for this debt?

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State laws vary widely in the United States but in almost every state the biological parent has sole rights to custody of the child. If a custodial parent dies the surviving natural parent will normally be granted custody of the child.

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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

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In the United States when the custodial parent dies, the non-custodial parent automatically gains custody unless they've been deemed unfit.

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The court will then appoint a new custodial parent.


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