Posted on 08/06/2014 6:47:14 AM PDT by Innovative
Lisa Mason had taken out close to $100,000 in student loans in order to pay for nursing school, and was making payments on the debt when she died. Steve Mason said he and his wife, who had co-signed the loans, were contacted immediately after his daughter’s death and were told they must start making payments.
“We knew if she didn’t pay her debt we would be responsible by co-signing, but we didn’t know that if she died the debt would fall to us,” he said.
Mason said his daughter’s debt has ballooned to $200,000 and the payments exceed $2,000 a month.
(Excerpt) Read more at foxnews.com ...
The moral of this story is for people to understand that by co-signing on a loan, you are taking responsibility of repaying it, if the original borrower won't, for whatever reason.
They aren't off the hook for the debt, though. Maybe some sharp attorney will advise them to do something clever. I hope so.
Well, now you do.
My heart goes out to you but life is full of tough lessons.
Duh! They could have taken out an inexpensive term life policy for the amount of the loan on the daughter’s life.
Well, for one thing they didn’t expect that their daughter would die in her twenties. No one does.
When I took out a PLUS loan for my kids, there was a life insurance option which paid off the loans if either the debtor or cosignor passed. It added about $80 to the principle of a $28K loan.
I don’t co-sign for ANYONE. I’ve said no to my son, my sister and my dad.
For nursing school???
Where was the campus? On the moon?
I have family members who are nurses and there ain't no way they paid 100,000 dollars for their education.
this is a tough lesson for all of us.
The lesson has to do with co-signing, and also has to do with taking on so much student loan debt.
It also has to do with overall financial planning.
For example, did this girl have life insurance? Life insurance is a great idea if you have huge debt which will not be forgiven if you passed away.
Where is her husband? Or is there no husband? Do those children have fathers? Is child support being paid?
Young people in their 20s are not too young to do some financial planning. They should be doing so, if they are taking on debt to go to school. They should always evaluate if the cost of school balances with the potential higher earnings down the road. And they should have some plans with their family, if unthinkable events such as dying happen.
Every day is a gift..
A bus can end your day..
It’s very common to carry pay off insurance on loans and/or life insurance.
Heck the one credit card I have charges me 3 dollars a month for pay off/payment suspension insurance. If I die a death cert zero’s it out, if I am hurt and can’t work the minimum payments are made until I can.
I hope to never need it but it’s nice to know it’s there.
How did a 27 year old get a liver disease? I am just curious. Why did the daughter take out private loans instead of going through the direct loans program? Did her parents make too much money? Sad story especially for the children.
This is one of the things that LIFE INSURANCE was designed for and anyone who co-signs is at fault if they do not take it. If they had their daughter or had taken themselves a life insurance policy on their daughter they would not be in this debt situation. This is called hedging your risk!
My advice for everyone.If you co-sign on a loan for your kids or anyone get a tern life insurance policy for the amount of the loan on that person.
Excellent advice.
how did a ‘close to 1000,000’ loan that was being paid on ‘balloon to 200,000’?
someone isn’t being straight here
I have co-signed for obligations of my son and my daughter. I assume that they won’t pay and that I will be responsible. I have never had to do that yet.
One of my best friends in high school had liver disease.She died in her early 30’s.
Some students decide to go to expensive private colleges - somehow thinking it’s a good investment? Then they decide to live in an expensive apartment rather than living in a dormitory. Then they need a car to get to campus, a big screen, a new computer...
The smart kids live at home, go to a community college the first two years, do well and get a scholarship to the state college.
Most parents want to do the right thing for their kids. Maybe these parents thought it was important for their daughter to go to a fancy school.
Sorry for their loss.
However, if she died, she didn't pay her debt now, did she?
“We knew if she didn’t pay her debt we would be responsible by co-signing...
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