Home

Student Loan Cancellation Due to Death

  • user warning: Can't create/write to file '/tmp/#sql_2f20_0.MYI' (Errcode: 122) query: SELECT t.tid, t.* FROM term_data t INNER JOIN term_hierarchy h ON h.parent = t.tid WHERE h.tid = 54 ORDER BY weight, name in /home/student/public_html/sites/all/modules/modules/taxonomy/taxonomy.module on line 771.
  • user warning: Can't create/write to file '/tmp/#sql_2f20_0.MYI' (Errcode: 122) query: SELECT t.* FROM term_node r INNER JOIN term_data t ON r.tid = t.tid INNER JOIN vocabulary v ON t.vid = v.vid WHERE r.vid = 230 ORDER BY v.weight, t.weight, t.name in /home/student/public_html/sites/all/modules/modules/taxonomy/taxonomy.module on line 633.
  • user warning: Can't create/write to file '/tmp/#sql_2f20_0.MYI' (Errcode: 122) query: SELECT DISTINCT b.* FROM blocks b LEFT JOIN blocks_roles r ON b.module = r.module AND b.delta = r.delta WHERE b.theme = 'studentloan' AND b.status = 1 AND (r.rid IN (1) OR r.rid IS NULL) ORDER BY b.region, b.weight, b.module in /home/student/public_html/sites/all/modules/modules/block/block.module on line 433.
Mon, 04/06/2009 - 15:41 | by carole.vansickle

To be clear, trying to cancel your student loan debt via your own death is ridiculous. However, if you have a great deal of student loan debt, it is important to understand how it will affect your heirs. This is the only reason that this information is important, and it is the only way that this information should be used.

• Student loan debt does not survive your demise. This means that your estate and your heirs are not responsible for your student loan debt after your death. While a lending body will almost certainly take a check from them following your demise if it is offered, they are not legally bound or required to pay off student loan debt, nor will their credit or their inheritance be affected by the debt.

• If a parent borrows money for a child in the form of a PLUS loan so that the child can attend school, this debt is also forgiven at the time of the child’s death, not the time of the parent’s death. Perkins Loans, FFEL loans and Stafford loans all will be forgiven with the submission of the death certificate to the lending body.

• Private loans do not work this way. If you have a private loan that you took out for educational purposes, that loan may be held against your estate. In this case, the way that the debt is settled will vary depending on the probate laws in the state of your residence.

Obviously, death is not an option when it comes to student loan forgiveness. However, you may wish to use this information when it comes to estate planning and life insurance planning so that you understand exactly what you are and are not leaving your heirs.