Grieving father struggles to pay dead son’s student loans. Some, not all, student loans are erased by the borrower’s death, but they are not cancelled by bankruptcy, giving the lender the right to pursue the borrower (or in this case, the co-signer) to the ends of the earth for the money. Yeah, one shouldn’t borrow more than one can repay but bankrupcy is the legal means for dealing with those mistakes. Why are student loans immune?
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What difference does it make? By election day, Barry will forgive all student loans and mortgages in an attempt to buy enough votes to keep the moving vans away for 4 more years!
Probably my son wouldn't qualify for the student loan amnesty program.
Why are student loans immune?
http://www.finaid.org/questions/bankruptcyexception.phtml
Actually interesting reading.
"With the introduction of the US Bankruptcy Code (11 USC 101 et seq) in 1978, the ability to discharge education loans was limited."
So it's Carter's fault! Ya hear that, lefties?
I BLAME CARTER!!!
Why? For the same reason IRS debts are immune from bankruptcy, and criminal fines: the government is the creditor and in 2012 the government is our master.
Ironically, the article says the government loans are cancelled by the death of the student. It's the privately-issued ones that are chasing him. Y, I understand why fines and IRS debt would not be subject to bankruptcy although I understand one can often negotiate with them and get the amount down. (On the other hand, loans to bankrupt green energy companies apparently don't have to be paid back either.) My point is that private lenders know these loans are not dischargeable by bankruptcy and thus are prone to lending more money or lending to individuals who may be less worthy credits than they would be otherwise. Of course, this lack of lending discretion also was rampant during the housing bubble but that bender has apparently worn off.