My dad died and I just learned he paid off my school tuition with $90,000 in loans. Am I now on the hook for this?

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Student indebtedness indebtedness is simply a acquainted occupation for galore Americans, with Pew Research reporting that they collectively owed astir $1.6 trillion successful acquisition indebtedness arsenic of June 2024 (1).

Most radical who beryllium took retired loans themselves oregon cosigned for others who borrowed. But what if you extremity up getting amazed with a pupil loan-sized indebtedness you were not expecting?

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Let's imagine, for example, that Dave went to an costly four-year college, covering his archetypal twelvemonth connected his own. For this, helium took retired astir $30,000 successful pupil loans portion his parents paid for the rest. Now, 4 years aft graduating, Dave's dada died and his mom, who didn't grip the household finances, got a announcement successful the message saying dada owes $90,000 for Dave's education.

Is Dave going to beryllium liable for paying this indebtedness and abruptly saddled with a load worthy astir $100,000, oregon did the indebtedness dice with his dad? Here's what you request to know.

The archetypal measurement is knowing that determination are pupil loans for parents and pupil loans for students. This is existent of some national and backstage pupil loans.

When Dave's dada took retired loans, helium could person taken them retired successful his son's name, undoubtedly requiring Dave’s cognition and statement (this isn't the lawsuit here). He besides mightiness person borrowed wealth from the Department of Education successful the signifier of Parent PLUS Loans (2) oregon from a backstage pupil lender successful the signifier of genitor loans.

Parents who instrumentality retired these past 2 types of loans are solely liable for them. So, Dave won't beryllium liable for the indebtedness straight arsenic the loans were not taken retired successful his sanction and Dave besides did not cosign for them.

However, this doesn't needfully mean the indebtedness conscionable disappears. Depending connected the benignant of loans Dave's Dad took out, the indebtedness could beryllium gone for good, oregon the lender could effort to cod from his dad's estate.

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When idiosyncratic dies with debt, usually the creditors cannot cod from surviving household members unless those household members: