Saturday, September 15, 2012
Upon the death of a person with federally insured student loans, the payments on those federal student loans are waived. This means that the estate does not need to make any payments on the loans. In order to stop the payments, the executor of the estate might need to send a copy of the death certificate to the lender. This process can be complicated and it might take some time to complete the process. However, the important thing that a person needs to understand is that federal loans are discharged upon the death of the borrower.
See Dave Ramsey, What Happens to Student Loans Debt After Death?, Fox Business, Aug. 28, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.