Student Loans Due At Death?

Callie says her brother was killed in Afghanistan. He had a couple of student loans for $8,000. The attorney probating the estate says that she has to pay those off. Is that correct?

QUESTION: Callie in Indianapolis says her brother was killed in Afghanistan in May. Her mother is finalizing the estate, and he had a couple of student loans for $8,000. The attorney probating the estate says that she has to pay those off. Is that correct?

ANSWER: Federally insured student loans are not due at death. They’re waived at death.

Two things: One is you need a new attorney because he’s an idiot. He’s an estate attorney, and he doesn’t know that. That’s ridiculous. That would be on the first page of questions that you would answer if you were an estate attorney. Oh my gosh! How basic. Just fire him. I don’t know what else he’s told you that’s wrong. That’s the problem. Once you establish that he’s an idiot, you can’t take advice from him.

Send a copy of the death certificate to Sallie Mae. It’s going to take some time, but when you are declared permanently disabled or when you pass away and you have federally insured student loans, they are not held against the estate. They are waived. You are dealing with the freaking federal government, so it is going to be like pulling teeth to get this done, but they do not charge you. I would not pay it out of the estate.

Dave said don’t pay them and get a new attorney. That’s what Dave said.

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