Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, August 9, 2010

Student Loans Not Forgiven Upon Student's Death

Student loansAfter completing three years towards his degree, Christopher Bryski died in July 2006. He left behind federal student loans, private student loans, and two small credit card bills. Upon receiving a death certificate, the federal student loans and the credit card bills were forgiven. But the private student loans were not.

Private student lenders don’t inform co-signers of their obligations upon the death of the primary borrower. Bryski’s family continues to make payments on his loans, and they will end up paying $85,800 (almost double the amount of the original loan) due to interest rate changes and increases associated with the forbearance periods.

Families currently looking for student loans should maximize federal borrowing options before turning to private lenders.  If they turn to private lenders, they should read the fine print and consider an insurance policy to cover the loans.

See Mary Pilon, When Student Loans Live on After Death, W.S.J., Aug. 7, 2010.


Disability Planning - Property Management, Estate Planning - Generally | Permalink

TrackBack URL for this entry:


Listed below are links to weblogs that reference Student Loans Not Forgiven Upon Student's Death:


Everyone needs to go get a loan for college so they can be in debt most of their life! That way when they get out they can be a waiter or waitress for the smarter people that said forget that college crap I'm going to start a business and the poor college kids will work for me ! True story ... real life

Posted by: scoremore | Oct 12, 2010 5:51:04 AM

I was in a bad car crash and am now disabiled. i took out fed student loans and was not able to repay them. i do not have much in the way of any assets. no co-signers on the loans. will my son who is 26, upon my death have to sign over my lady bird deeded home over to the feds for the balance on the studnet loans or will they be forgiven on my death?

Posted by: amy | Jul 10, 2011 10:30:17 AM

Post a comment