IfI default on my student loans and my co-signer died, is the co-signer’s estate responsible for paying it back?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
IfI default on my student loans and my co-signer died, is the co-signer’s estate responsible for paying it back?
Will they go after the estate?
Asked on August 12, 2011 New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you default on your student loans and pass away leaving an unpaid balance on the loans owed, your estate is responsible for the balance.
If you default on your student loans while alive or pass away leaving a balance owed on these loans and your estate does not have enough assets to pay the loans off, the co-signer for these loans would be ultimately responsible for their full payment assuming the creditor pushes for the balance owed.
One way to possibly prevent such a siutation is for you to obtain a life insurance policy in an amount sufficient to pay off the student loan in the event you pass away before the debt is fully retired.
Good question.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.