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What happens to a student loan when the borrower student dies?
Abordoli
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.
Wiki User
∙ 16y ago
Wiki User
∙ 12y agoIf 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.
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What happens if you co signed a student loan and the primary borrower dies?
Their going to come after you to pay the debt. YOU CO-SIGNED! That means in the event that the primary borrower can not or does not pay the loan you are responsible to pay that loan. There is no way around that.
What happens if you are a borrower and the co-signer dies?
If the co-signer dies the surviving borrower is responsible for paying the loan.
What happens if you co-signed a car loan and the primary borrower dies?
You are still respnsible for paying should the borrower die.
Who gets garnished for student loan The borrower or the cosigner?
the borrower
What happens if the loan borrower dies then the guarantor passes away shortly after?
borrower dies then it is not suitable that amount recovered from gaunter because of person taking guaranty of live person nor death
Student loan signer?
That's the borrower.
What happens if co-signer of a student loan dies?
The other signer is responsible.
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.
What happens when a borrower pays of a pawnshop loan?
A personal item is returned to the borrower
Does deceased student's estate pay student loan?
If the student dies, the loan dies with him/her. It's all in the fine print of the Master Promissory Note.
If the primary borrower dies is the cosigner now resonsible for the loan?
Yes, unless the loan is settled by the estate.
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.
