Question by  Anni70 (9)

If someone with a student loan dies before it is paid, who pays the loan?


Answer by  malone (4817)

Guaranteed students loans are forgiven in the event the borrower dies. This feature is built into the program. There is no special application or request process.


Answer by  caliprincess04 (155)

The guarantor, who is often the student's parents or legal guardians will be held responsible for the student's debt. Debt does not just go away when somebody dies... someone has to pay it.

Reply by malone (4817):
Student loans are guaranteed by the federal government, not a student's parents or guardians. If the borrower dies, the debt is forgiven.  add a comment

Answer by  flamiss22 (5081)

Technically the debt is only on that person but if it is a federal loan the government will get their money if there is any money. If it is your spouse who passed away then you will have to pay it or if it was assumed before you married him you can apply for injured spouse status so you don't.

Reply by malone (4817):
If the borrower of a guaranteed student loan dies, the loan is forgiven. A spouse is not responsible for debts of a deceased borrower in any situation, most especially a student loan.  add a comment

Answer by  SIDDHU (861)

If the student who has taken a loan dies than the loan has to be paid by his father. In case while taking the loan the student has kept someone else as the gurrantor than the burden will come on the guarrantor.

Reply by malone (4817):
Parents are not party to a guaranteed (Stafford) student loan. If the borrower dies, the loan is forgiven.  add a comment

Answer by  pagan23 (1342)

No one. The loan is forgiven. In some cases the cosigner might be eligible, but that is highly unlikely. The best thing to do is send in proof of death and the gaurantor will cover the bill. There may be a problem with the interest, but as long as you maintain communication you should be ok.

Reply by malone (4817):
Guaranteed student loans do not have co-signers. PLUS loans and unsubsidized loans may have other parties signed, but a GSL does not. If the borrower dies, the loan is forgiven. Period. There is no "problem with the interest." The entire amount owed is written off.  add a comment

Answer by  Turkwork (1150)

If the person had a co signer the co signer will pay it. If the student took the loan themselves the loan balance is written off my the loan company.

Reply by malone (4817):
Guaranteed student loans (Stafford Loans) do not have co-signers. When a borrower dies, the loan is forgiven. There is no "loan company" who pays anything. The federal government assumes the loss.  add a comment
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