There is de facto a student loan termed as Plus Loan or a Parent Loan for Undergraduate Students. With this type of student loan, it is the parent who applies and takes all the obligations for the loan. Therefore, under this type of loan, the parent is the borrower while the student is the recipient. So under this law, if either of the borrower or the recipient dies before the full cost of the student loan that they acquired, the loan can be canceled with death as its basis.
Like in the case of a mum who took a Plus loan for her son, the son should no longer have to pay for the loan upon his mother's death since his mum is carefully as the borrower. This will also apply if the father co-signed the application. Normally, habitancy would think that the obligation would be transferred to him as a co-signatory, but under this law, he does not have to pay for the remaining necessary and interest of the loan upon the death of his spouse who is the loan borrower.
Death As a Basis For student Loan Cancellation
No comments:
Post a Comment