The student debt crisis has been increasingly hard on older households, too.
Thats $336 billion five times what it was in 2004.
That means if all you have is federal student loans, your family wont have to pay the debt.
7 Ways to Make Money if You Hate People
Do you avoid people too?
Enough small talk.Here are some waysto earn extra cash, without all of the social stuff.
If the student dies, the parent wont have to repay the loan.
Millions of college students are in this boat.
Thecost of college has tripledsince 1980, increasing a lot faster than inflation.
Some private lenders will forgive the debt if you die, but most wont be that lenient.
Some lenders of private (non-federal) student loans offer a death discharge if the borrower dies.
Thats not the norm, though.
Your Estate
Contrary to popular belief, you dont have to be mega-rich to have an estate.
Your creditors your lenders and credit card companies expect to be paid by your estate.
They can file a claim in probate court, which oversees the handling of your estate.
Each state has its own laws governing estates.
If youre married, jointly held property like a home or joint bank account should be safe from creditors.
And 9 out of 10 private loans have a co-signer, according to the Consumer Financial Protection Bureau.
If thats the case, your survivors should look into your lenders compassionate review process.
If the co-signer is capable of making loan payments, the lender is less likely to forgive the loan.
Consider buying life insurance as a safety net if your family is co-signing some hefty student loans.
That way your relatives wont be burdened.
And fewer millennials are working full time for companies that offer traditional benefits packages including life insurance.
Increased life insurance can help manage these costs, Jarvis said.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
