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Morbid Thought
Started by KinesStudent
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If you're the only one whose name is on the loans, nobody. Incidentally, that's pretty much the only way you can get out of paying federal loans.
Sweet, I'll keep it in mind....😛
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Uh...
They will bring you back as a zombie to work a mop until it's all paid back. You will see quite a few of these guys working in the hospital during your overnight shifts.
MilkmanAl is correct above, this debt dies with you unless you have a cosigner.
Not all debt is treated identically.
This just happened at Wayne State. Idk about the guy's loans, but he was awarded a posthumous MD since he'd finished all the requirements
Death and permanent disability will get you out of your govt loans. As for the mother that died owing millions, they will take the money from her estate (house, autos, assets, life insurance, etc). If debt>all her estate's assets, they're SOL. Her daughter has no obligation to pay off her debt, unless she still has things from her estate (house, etc). It's possible she accepted responsibility for her treatment, but why would she do that.
*Shrugs*
I know very little of the details. All I know is she said that in reality
noone would want to marry her because of her debt
This is correct. When my mother died I was the sole heir in her Will. When she died her estate (mostly just a house) had value greater than her debts. Since I lived in the house and wanted to continue to live there I had to borrow money to pay her outstanding credit card debts. Spouses can inherit without probate or inheritance taxes but children can't which means that I was also forced to borrow an additional $8K to pay probate fees, inheritance taxes, and attorney fees. It was a sad time in my life as I had just lost my Mom and had no idea all these bills were coming. 🙁 Learn from our mistake and get better estate planning than my Mom did.
like said above, your federal (stafford and grad plus) loans would be forgiven in circumstances of death or severe disability.
this is NOT the case if you take out private loans or have other debt. this is one of the reasons why you are strongly encouraged to rely on federal loan programs rather than private loans.
this is NOT the case if you take out private loans or have other debt. this is one of the reasons why you are strongly encouraged to rely on federal loan programs rather than private loans.
If possible/practical, think about getting some kind of life insurance policy that would help whoever would be stuck paying your loans off. That's what I hope to do, as right now I still have quite a bit of undergraduate debt from a private lender, cosigned by my dad. Thankfully, my med school aid package is all federal so I'm pretty sure that debt will die when I do.
This is 21st century America. All loans die with you, once the estate is liquidated, unless someone voluntary took the loans on before you died (as is often the case in marriage or with a cosigner).
It doesn't matter if it is a private loan, a federal loan, or a mafia loan. There is no legal avenue where a party who has not consented to the loan can be held liable for the loan.
This is a very real and practical thing to think about, actually, and in this case, knowledge is power. I personally know at least 2 people who went the military route because they thought their parents would be held accountable for paying off loans if something tragic happened to them. It's such a bad idea to join the military just for the money, and I was unsuccessful in convincing them of the truth. Apparently those recruiters are pretty good salesmen.
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+1. I pay a few dollars every month for a life insurance policy. But I also have "private" undergrad loans... now under the government.
Just because no one is obligated to pay your loans when you die, doesn't mean that debt collectors won't call all your contacts. I've read about them calling grandma's telling them you owe money and pretty much getting them to pay. Huge scam and I wouldn't want to wish that on a loved one.
obviously.
in this day and age, you can't get a private loan without a cosigner. if you are financially secure enough to qualify for one, you probably don't need a private loan. however, some people disregard the serious risks in taking out non-stafford/gradplus loans and do it anyways, leaving their cosigners and heirs responsible for their debt.
This has been far more informative than I had initially anticipated. Thanks to everyone who posted.
ahaha, I wonder if they still try to hit your bank account.
They talked about this during my exit interview. Your family just has to prove death I believe. I wasn't really listening to that point since I don't plan on dying soon. 🙂
This. My Dad isn't even dead and debt collectors come to my house all of the time trying to get me to pay his debts. It's important to learn your rights, because the thugs they send to your relative's house will swear up and down that they have to go to jail if they don't pay.
not even declaring for bankruptcy gets you out of school loans...seriously!
I think this is kind of lost in the shuffle too. Which, maybe it wasn't an issue before the economy went to hell. But, I've seen a number of friends graduate with a 4 year degree and work at the video store, or the grocery store, or rite aid. God forbid you're foolish enough to have bills.
I don't think marriage automatically means a sharing of debt, though I'm not sure since my in-laws took my husband's debt when he graduated college so it's all on me anyway... being an only child has its perks. However, I remember reading here on SDN before DO NOT consolidate your student loan debt with that of your spouse, because they will be responsible to pay the total of the debt between the two of you.
bankruptcy does not get you out of your loans. however, if you stay in good standing and don't default on your loans (bad things will happen!), there are several repayment plans available.
one of these is income-dependent. they calculate payments based on your income. if after 25 years you have not paid off your loan in its entirety, they will forgive the remaining balance. so if you go into a field where you never see the amount of dollabillsigns needed to pay off your loans, it will eventually be forgiven. you'll just be making payments for 25 yrs and feeling its effects.
so with time, there are other ways your loans will be forgiven.
as long as you don't default.
then you're SOL.
one of these is income-dependent. they calculate payments based on your income. if after 25 years you have not paid off your loan in its entirety, they will forgive the remaining balance. so if you go into a field where you never see the amount of dollabillsigns needed to pay off your loans, it will eventually be forgiven. you'll just be making payments for 25 yrs and feeling its effects.
so with time, there are other ways your loans will be forgiven.
as long as you don't default.
then you're SOL.
hey so is the take home message of this thread to 'keep your money tight'?
1. Graduate from med school
2. Fake death
3. ???
4. Profit!
^
I'm really sick of this meme by now, but I have the flu today and couldn't manage anything better. Apologies.
2. Fake death
3. ???
4. Profit!
^
I'm really sick of this meme by now, but I have the flu today and couldn't manage anything better. Apologies.
That's why I keep telling my grandma to put a life insurance policy on me. She's my cosigner on private loans so if I die she's stuck with quite a bit of debt 
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the middle class tax payers
