ARE STUDENT LOANS DISSOLVED UPON DEATH?

My 3 young kids all have loans as well as us as Parent Plus Loans

{ 2 comments }

Huntsman February 3, 2014 at 1:34 pm

Yup- unless there is a co-signer on the loan, then the other person is also responsible for the debt. If there is an estate left over though, the loans must be paid out of the estate

just not that February 3, 2014 at 2:27 pm

federal loans are dissolved upon the students death (Perkins, Stafford loans). Private student loans (that have a cosigner) are NOT dissolved upon the students death. The cosigner is then responsible for paying on the private student loan.

Parent PLUS loans are NOT dissolved upon the college students (their child’s) death. The parent agreed to repay the loan, so PLUS loans are only dissolved upon the PARENTS death, not the college student for which they were taken out.

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