John Crow 
Federal student loans can serve as a great financial aid. They may even offer more benefits than personal student loans. However, if you find that the amount from the former is insufficient, you may opt for both.
But what happens to your student loan if you die? If you’re worried about whether your cosigner or loved ones will be responsible for your student loan debts, there are ways to avoid such scenarios. This article can serve as your guide on what you can do.
Do Student Loans Get Passed on After Death?
All federal student loans get discharged after death, whether you have a Direct Loan, a Federal Perkins Loan, or a Federal Family Education Loan (FFEL) Program loan. Debt discharge means no one — not your estate, your cosigner, or any of your family members — needs to pay the remainder of the loan. However, some private student loans don’t offer the same benefits.
Federal vs. Private Student Loans
Federal student loans can be forgiven, cancelled, or discharged due to death and other qualified situations with appropriate documentation or proof. For instance, your family can showcase the original death certificate or a certified copy. Your lender can explain what evidence they require. However, private student loans from banks, online lenders, and credit unions are not legally required to discharge debts once the borrower dies.
You should read your loan terms — your contract should tell you what happens to your debt after death. Student loans may be unsecured, but lenders can still come after you or your estate if they’re left unpaid.
Can the Debt Fall on Your Family or Beneficiaries Named in Your Will?
If you have a private student loan debt and your lender does not discharge debts after death, then your lender can request payment from your estate. The executor or administrator of your will is responsible for paying the remaining debt through your assets. The lender cannot seek payment from your family’s assets if your assets are not enough to pay the remaining debt. Your family members will not be responsible unless they’re your cosigner or spouse.
However, because the executor or administrator uses your assets as payments, this may affect how much your beneficiaries will receive.
If you and your spouse live in a community property state, and you acquire the student loan debt while married, then your spouse may be held responsible. Under community property law, spouses own properties equally if they acquire them while married, including their debts. Your spouse will not be responsible if you’ve acquired the debt before marriage. Kentucky and Tennessee are not community property states, so unless a spouse agrees to be a co-signor or guarantor of the loan, the spouse that took the loan out will be responsible for the debt.
Does the Debt Fall on Your Cosigner?
If your private student loan required you to have a cosigner, then your cosigner is responsible for your remaining student loan debt. Your lender may even accelerate the debt repayment after death. If you don’t want your cosigner to be held responsible after your death, you can check whether your lender will allow a cosigner release, which frees your cosigner from your loan completely. Otherwise, consider paying off your student loan with a new loan that only you are responsible for and does not have a cosigner.
Student Loan Forgiveness Programs
You don’t have to wait for death to relieve yourself of your student loan debt. You may qualify for student loan forgiveness programs.
Here are your options:
- For persons with disabilities: If you are totally and permanently disabled, and if you have a Direct Loan, Perkins Loan, or a FFEL Program Loan, then consider qualifying for a Total and Permanent Disability Discharge. You can pause your student loan payments for 120 days while you apply.
- For persons with an IBR Plan: If you have an Income-Based Repayment (IBR) plan, the program forgives your loan after 20-25 years. The repayment period depends on your plan.
- For government employees: Government employees can apply for the Public Service Loan Forgiveness (PSLF) as long as they have a Direct Loan and work in federal, state, local, or tribal government, including the military and AmeriCorps. The program forgives your loan after 120 qualified monthly payments while working full-time. You may have more benefits if you’re in the military.
- For workers in nonprofit organizations: Similarly, you can get a PSLF if you have a direct loan and are employed by a qualified nonprofit organization. You also need to make at least 120 qualified monthly payments while working full-time.
- For teachers: Teachers can opt for the Teacher Loan Forgiveness program and get up to $17,500. To qualify, you must have a Direct Loan or FFEL Program Loan and teach full time for five consecutive academic years. You must teach in low-income elementary and secondary schools or an educational service agency. You may also be eligible for PSLF if you meet the requirements.
- For medical professionals: Medical professionals may qualify for the PSLF. You must have a Direct Loan and should be employed by a qualified nonprofit organization. You also need to make at least 120 qualified monthly payments while working full time.
Do Student Loans Go Away After 20 Years?
Some programs forgive student loan debts after 20 years or less. For instance, programs that require 120 qualifying payments can forgive loans after 10 years. An Income-Driven Repayment (IDR) plan can forgive your loan after 20 years.
Here’s a breakdown for the IDR repayment period:
| IDR Repayment Plan | Repayment Period |
|---|---|
| Income-Based Repayment (IBR) Plan borrowed after July 1, 2014 | 20 years |
| IBR Plan borrowed before July 1, 2014 | 25 years |
| Income-Contingent Repayment (ICR) Plan | 25 years |
| Pay As You Earn (PAYE) Repayment Plan | 20 years |
| Saving on a Valuable Education (SAVE) Plan | 20 years (undergraduate), 25 years (graduate or professional loans) |
Plan Your Future With Crow Estate Planning & Probate
Thinking about dying with student loan debt can be tough. It’s even harder when you think that your loved ones might carry the burden next. Thankfully, you can help your family avoid being responsible for your debt if you plan correctly, and Crow Estate Planning & Probate can help.
As a firm that focuses on estate and business needs, we have the time and energy to walk you through the next steps you should take. We’ll help you make a plan to manage your assets, such as writing a will, naming an executor, or setting up trusts. With a proper plan, your family won’t need to worry about potential lenders or creditors knocking on their doors. Schedule an appointment today to learn more.
About the Author
With nearly two decades of legal experience, John advises individuals and families on wills, trusts, probate matters, and complex inheritance disputes. His practice includes both practical estate planning for families seeking clarity and peace of mind and sophisticated planning for high-net-worth individuals involving advanced trust structures and asset protection strategies.
Over the course of his career, he has helped hundreds of families plan their estates, administer probate estates, and resolve contested inheritance matters.
John earned his Bachelor of Arts in History with honors from Vanderbilt University and his Juris Doctor from Cumberland School of Law at Samford University. He is based in Clarksville, Tennessee and works with clients throughout Middle Tennessee and Western Kentucky. Learn More.
Licensed in Tennessee and Kentucky