In the United States, students in college have racked up more than $885 billion in student loan debt. Students and graduates are responsible for the majority of that debt. Some families facing tragedy are also facing difficult decisions. Some banks are holding families responsible for debt, even when they’re not co-signers.
Market student loans have currently
There are many people getting student education loans. Federal loan programs offer up to $5,000 per year per student. That money, however, is barely enough to cover books at most schools. Students that don't have credit generally have to have a cosigner in order to get private student education loans the government does not back. It’s easier to get an education loan than a no fax payday loan sometimes. Several find that student loans are popular because they aren't written off with bankruptcy. The money will always be owed.
Abandoning student loans after dying
Passing away won't cancel out student loans all the time, families throughout the country have discovered. Sometimes the student loans have co-signers. The co-signer ends up with the responsibility of the education loan debt. This leaves many parents who are grieving the dying of their child with the added, unexpected responsibility of paying back thousands of dollars worth of debt for their adult kids.
Defaulting on loans after dying
A student sometimes does not have to have a co-signer. In the case of passing away, the loan ends up “in default” technically. There is estate left when this person dies. Anything could be taken to pay the debt back. The estate sometimes cannot pay the debt. In these cases, the loan is written off by the bank. Much of the time, the debt is passed along since cosigners are typically needed to qualify for the loan.
Articles cited
Wall Street Journal
online.wsj.com/article/SB10001424052748704741904575409510529783860.html
KCTV5
kctv5.com/news/26796636/detail.html
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