0
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. 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.
What else can I help you with?
Can the government seize my inheritance to pay off student loans?
In some cases, the government can seize your inheritance to pay off student loans if you default on your payments. This typically happens if the loans are federal student loans and you are in default. It's important to stay current on your loan payments to avoid this situation.
What happens to Parent PLUS loans if the parent dies?
If a parent with a Parent PLUS loan dies, the loan may be discharged, meaning the remaining balance may be forgiven.
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 are 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.
What is one advantage of federal student loans compared to private student loans?
One advantage of federal student loans compared to private student loans is that federal loans typically offer more flexible repayment options and lower interest rates.
What kind of agency is The Student Loan People?
The Student Loan People is an agency that specializes in student loans. They are located in Kentucky. They work with people getting student loans, collections and repayments of student loans.
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.
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 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.
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.
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.
Can the government seize my inheritance to pay off student loans?
In some cases, the government can seize your inheritance to pay off student loans if you default on your payments. This typically happens if the loans are federal student loans and you are in default. It's important to stay current on your loan payments to avoid 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 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 bank is closed what happens to student loans?
They are sold to another bank in the liquidation of assets.
What happens if co-signer of a student loan dies?
The other signer is responsible.
Are student loans forgiven after age 60?
Are student loans forgiven at age 60? Are student loans forgiven at age 60?
What company provides direct student loans?
There are only a few companies that provide direct student loans. You can go to a bank and get student loans from there, or you can get Federal Loans from your school.
