Does death end student loans?

[domino121]

What happens to the balance of student loans when the borrower dies?

 

Do they go after the estate as a preferred creditor?

 

Thanks.

[TracerBullet]

I believe it depends on the cancellation provisions of each type of student loan, but in general they are forgiven upon death of the borrower. The only exception I know of is for loans that have been consolidated with a spouse's... that is still due.

[fla-tan]

What happens to the balance of student loans when the borrower dies?

 

Do they go after the estate as a preferred creditor?

 

Thanks.

 

Federally Guaranteed Student Loans are forgiven upon death of the borrower.

 

 

fla-tan

[fla-tan]

I believe it depends on the cancellation provisions of each type of student loan, but in general they are forgiven upon death of the borrower. The only exception I know of is for loans that have been consolidated with a spouse's... that is still due.

 

Tracer

 

The regulation concerning spousal loans has been changed. In a spousal consolidation loan, the deceased spouse's loans are now forgiven. That is also true for disability as well.

 

 

fla-tan

[TracerBullet]

The regulation concerning spousal loans has been changed. In a spousal consolidation loan, the deceased spouse's loans are now forgiven. That is also true for disability as well.

 

Really? I wasn't aware of that. Thanks for the heads-up!

[JoeDirtPharmD]

Really? I wasn't aware of that. Thanks for the heads-up!

 

*laughs to self* you aren't planning on dying anytime soon are ya'?