In the United States, students in college have racked up more than $885 billion in student loan debt. Students and graduates are accountable for the majority of that debt. Some households facing tragedy are also facing difficult decisions. Some banks are holding families accountable for debt, even when they are not co-signers.
Covering school with student education loans
Student loans are large business. Federal loan programs offer up to $5,000 per year per student. Much of the time, that is not enough. Books at school cost half that alone much of the time. Students that do not have credit usually have to have a cosigner in order to get private student loans that the government does not back. In many cases, getting an education loan is easier than getting a no fax payday cash advance. Since student education loans aren't impacted by bankruptcy, they’re impossible to have written off, they’re really popular.
Passing away leaving student education loans behind
Many households in the country have learned a sad truth. Student loans are not canceled by death. Paying back an education loan will be the responsibility of the co-signer. This leaves several 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 children.
Defaulting on loans after dying
When a loan holder dies, the loan is “in default” if there is no co-signer with the student. The loan debt has to be paid back with the estate left over. If the estate cannot pay back the loan, then the bank has to write off the debt. Due to the belief that most students use cosigners to qualify for loans, that debt is passed along.
Information from
Wall Street Journal
online.wsj.com/article/SB10001424052748704741904575409510529783860.html
KCTV5
kctv5.com/news/26796636/detail.html
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