Student Loan Debt If I Die

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Student Loan Debt If I Die

by Jocelyn
(Pittsburgh, PA)

If my mother cosigned a student loan for me and I were to die unexpectedly, would she still be responsible for my debt? If she took out a life insurance policy for me, would that then cover the debt?

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Student Loan Debt If I Die

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Sep 23, 2011

Student Loan Debt
by: Debtcollectionanswers.com.

The answer depends on what your loan agreement says. If you were to die, the loan may "die" with you or it may become your mother's responsibility as co-signer on the debt. So read your loan agreement and if you have any questions about it, contact the lender.

Typically federal student loans can be canceled upon the borrower's death, while private loans become the cosigner's responsibility.

As to whether she could use the life insurance proceeds to pay off the debt, she can use that money however she wants once she receives it.

Your question worries us, however. We hope you are not thinking about suicide because of your student loan debt. If you are, please call the National Suicide Prevention Hotline at 1-800-273-TALK.

And you may want to check out repayment plans such as IBRinfo.org.

Oct 11, 2011

MTE
by: Anonymous

I see many of us have been thinking along the same lines. :|

Nov 01, 2011

Clause
by: Anonymous

I hope for you and your mother's sake you're not contemplating suicide. Please, get help if you are.

But you should know most life insurance policies contain a no pay for suicide clause.

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Student Loan Debt If I Die

Comments for Student Loan Debt If I Die

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Student Loan Debt If I Die