We are an independent, advertising-supported comparison service. Our mission is to empower you to make more informed financial decisions by giving you access to interactive tools and financial calculators, publishing original and unbiased content, allowing you to conduct free research and information comparisons, and publishing original and objective content. Partnerships between Bankrate and issuers like American Express, Bank of America, Capital One, Chase, Citi, and Discover are just a few examples.
What happens to my loans if I die? If you die, then your
will be discharged after the required proof of death is submitted.
How We Make Money
The offers that show up on this website are from businesses that pay us. This compensation may have an effect on the placement of products on this website and other factors, such as the order in which they may appear within listing categories. However, the information we publish or the user reviews you see on this website are unaffected by this compensation. We exclude the full range of businesses and financial opportunities that may be available to you.
Who is responsible for student loans if you die?
If you pass away, there is no administrative discharge for your private student loans. Debts from private loans will be managed in the same manner as other debts. That means that they will be part of your estate. This estate settlement process (also called probate) varies by state.
What happens if you have student loans and die?
Federal student loan borrowers—who account for 92% of all student loan borrowers, according to Forbes—will have their outstanding debt forgiven by the Department of Education (ED) if they pass away, despite the fact that the terms of private loans vary from lender to lender according to their policy agreements.
Does student loan debt go away when you die?
According to the U. S. Department of Education, federal student loans are discharged. This policy also includes Parent Plus loans. The debt will be forgiven in the event of the demise of either the parent who took out a Parent Plus loan or the student who was the loan beneficiary.
Do student loans pass to next of kin?
When you pass away, your federal student loans are discharged, which means you are no longer responsible for making payments. Your loan servicer will require documentation of your demise from your parent, spouse, or the person you designate.