The Fate of Student Loans Upon One's Demise

In the realm of student loans, there are numerous providers offering various rates and repayment terms. Here's a breakdown of some popular U.S. student loan providers, their interest rates, and a few key features.

Ascent offers student loans with rates ranging from 3.69% to 14.41%. Known for its customer support and wide availability, Ascent also provides loans with rates of 12.98% to 14.93%.
College Ave offers student loans with rates ranging from 2.89% to 17.99%. This provider offers payment flexibility, making it an attractive choice for many students.
SoFi® offers student loans with rates ranging from 3.18% to 15.99%. The company is another popular choice, offering loans with competitive rates.
Sallie Mae, a well-known name in student loans, offers loans with rates ranging from 2.89% to 17.49%.
Earnest offers student loans with rates ranging from 4.35% to 9.99%. To qualify, applicants must have a minimum credit score of 665. Earnest also offers loans with rates ranging from 4.45% to 14.9%.
Funding U offers student loans with rates ranging from 7.95% to 12.49%.
ELFI offers student loans with faster repayment options and rates ranging from 4.88% to 8.44%.

It's important to note that private loans you took out on your own are likely to be forgiven upon death. However, co-signers are obligated to repay the loans if the student dies, unless the lender has a policy stating otherwise. If you have a loan that was issued before Nov. 20, 2018, and your lender doesn't have an official discharge policy, there is still recourse through a "compassionate review" process. As of Nov. 20, 2018, all loans taken out must release a co-signer in the event of the student borrower's death.

If you die, your federal student loans will be discharged. Proof of death must be submitted to your loan servicer to initiate the discharge process. It is also possible to discharge student debt in bankruptcy, but this is a complex process that requires legal advice.

Defaulting on student debt has consequences and remedies. If you are struggling to repay your student loans, it's important to reach out to your loan servicer as soon as possible. There are multiple student loan help resources available, including forbearance and deferment, which can provide temporary relief. Differences exist between student loan forbearance and deferment, so it's essential to understand these options before making a decision.

In conclusion, when choosing a student loan provider, it's crucial to consider the interest rates, repayment terms, and discharge policies. By doing your research and understanding your options, you can make an informed decision that suits your financial needs.