IfI default on my student loans and my co-signer died, is the co-signer’s estate responsible for paying it back?

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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 10 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.


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