Mom Has To Pay Dead Son's Loan

Tarshi said:
My parents die, I inherit their debt, same with kids etc....

Just one of those things
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Not here. If you know the law you know what you could be held liable for. People must be careful what they cosign for for adult children or parents or people you are not legally responsible for.

A parent only for their minor kids debts should they die. Not their parents bills or their adult children's debts unless they cosigned. She must have cosigned or have taken money from his estate and they are going after that. I assume she cosigned. If the person here dies without and estate and they are their bills alone, ie not cosigned or joint loans, the bill dies with them. It's the law. I am sure Loki can come in and clarify.

Reading the story those details are not made clear but I would be pretty sure that situation comes in play otherwise they would not have a legal leg with which to go after her.
 
Googling provided more facts. She cosigned. She says she didn't know that would make her responsible for it. Uhhhh.............raises eyebrow at that info. She is legally on the hook. Cosigning really is the same as taking out the loan yourself. Like I said don't cosign if you don't intend to be stuck with it.

Read her full petition below:

My name is Ella Edwards. My only son, Jermaine Edwards, was a wonderful young man and the light of my life. When he went to college to study music production, I was happy to cosign his student loans -- he dreamt of making a better life for himself and I wanted to help him do that. But then Jermaine died suddenly in 2009 at just 24 years old. That's when American Education Services (AES) and National Collegiate Trust (NCT) turned my son's dream into a nightmare for me and the two year old son he left behind.

Jermaine had three student loans when he passed -- two from the federal government, and one private loan. The federal loans were forgiven within a month of his death. But AES is refusing to forgive the loan.

Jermaine was my only child, and after his death, I was so devastated I could barely get out of bed in the morning. I requested an early retirement from my job, losing much needed retirement benefits. Since my son's death, I have been under doctors care. I am 61 years old and I have been trying to work to make Jermaine's loan payments. I am trying to pay off Jermaine's loan, but I simply don't have the money -- and because of my crushing depression, I am barely able to work at all. To make matters worse, Jermaine left behind a young son whose mother doesn't have many resources. Therefore, she relies on me to help support Jermaine's son.

Nobody told me when i cosigned the loan that I would be forced to pay them back even if my son died. Jermaine never had an opportunity to use his education and I can't use it either. I need help to get this loan forgiven and to change policies that will protect students and parents after the death of a student.
 
JordanC said:
Googling provided more facts. She cosigned. She says she didn't know that would make her responsible for it. Uhhhh.............raises eyebrow at that info. She is legally on the hook. Cosigning really is the same as taking out the loan yourself. Like I said don't cosign if you don't intend to be stuck with it.

Read her full petition below:

My name is Ella Edwards. My only son, Jermaine Edwards, was a wonderful young man and the light of my life. When he went to college to study music production, I was happy to cosign his student loans -- he dreamt of making a better life for himself and I wanted to help him do that. But then Jermaine died suddenly in 2009 at just 24 years old. That's when American Education Services (AES) and National Collegiate Trust (NCT) turned my son's dream into a nightmare for me and the two year old son he left behind.

Jermaine had three student loans when he passed -- two from the federal government, and one private loan. The federal loans were forgiven within a month of his death. But AES is refusing to forgive the loan.

Jermaine was my only child, and after his death, I was so devastated I could barely get out of bed in the morning. I requested an early retirement from my job, losing much needed retirement benefits. Since my son's death, I have been under doctors care. I am 61 years old and I have been trying to work to make Jermaine's loan payments. I am trying to pay off Jermaine's loan, but I simply don't have the money -- and because of my crushing depression, I am barely able to work at all. To make matters worse, Jermaine left behind a young son whose mother doesn't have many resources. Therefore, she relies on me to help support Jermaine's son.

Nobody told me when i cosigned the loan that I would be forced to pay them back even if my son died. Jermaine never had an opportunity to use his education and I can't use it either. I need help to get this loan forgiven and to change policies that will protect students and parents after the death of a student.
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She probably didnt know. People also dont plan for the deat of their 24 year old. Something like student loans shouldnt carry that penalty since the thing being paying for can old be used by the borrower. Its not like it was a car or a house. Its down right wron.
 
I believe in the US, you are responsible for your spouse's tax debt if you file jointly.
 
Tarshi said:
My parents die, I inherit their debt, same with kids etc....

Just one of those things
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One of the reasons I explain how important consumer credit insurance is to everyone I deal with in the office. The last thing you want your loved ones to face is your debt whilst they are grieving.

But like you said Tarshi,,,, it is just one of those things here.
 
GFunk said:
As much as it sucks, shit has to get paid back.
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Why? In the event of someones death we cant let it go? Hes dead. He died of natural causes its not like dude took his own life. Its incredibly strang that Im the only who thinks debt shoulf be foregiven upon death of natural causes.
 
If this were law, you'd have a surge of people faking their deaths to get out of their loans, lol.

But for real, student loans may as well be run by the IRS. The Govt guarantees many of these which is why even dying doesn't absolve you. The Govt wont even let you discharge your student loans in bankruptcy.

Its a tough break for the Mother. My heart goes out to her....:(

but she's not going to get a law in her favor unfortunately, for the reason I stated above, as well as not enough young adults suddenly die in numbers for this to even become a law. Also, most parents don't quit their job over the loss, which has added to her inability to pay.

Further, the Loaner can argue why didn't she get an insurance policy to cover any outstanding debts her son occurred that she co-signed. Also, what if he became incapacitated or a vegetable and didn't die, then this law would be useless to her despite her being in the same financial position.

Finally, if this did pass, there would likely be stipulations: Eg: that the death be accidental and not deliberate, no reckless activities, that no drugs booze etc be involved...they'd have to pretty much prove their health status etc much like an insurance policy to get a student loan, because in effect, a forgiven loan is like a 'payout' that the loaner has to eat.

I think deep down though...she knows this wont pass but is hoping that it will embarrass the Loan Co. to write it off, or perhaps a good Samaritan will step forward to pay it for her or funds will be raised for her. There are too many emotional tugs in her details for this not to have crossed her mind.

Because the bottom line here is only: my son died, I didn't read the co-sign contract fully, so why should I have to pay it. Let's make a law that I shouldn't have to.

All the rest of her details are independent and incidental, unfortunately.
 
The Dark King said:
Why? In the event of someones death we cant let it go? Hes dead. He died of natural causes its not like dude took his own life. Its incredibly strang that Im the only who thinks debt shoulf be foregiven upon death of natural causes.
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Guess so.
 
The Dark King said:
Just plain sad fam. This fuck you Im all about me attitude isnt really working
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And neither is the "let's forgive everything" mentality. Money is owed and needs to be paid back. Maybe if people donate to her or something. Shave some of that debt off for her, but it would still be getting repaid.
 
The Dark King said:
Just plain sad fam. This fuck you Im all about me attitude isnt really working
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No one is saying that.

Unfortunately life isn't about these broad koobaya expressions of "lets all just forgive" and the world will be right...it's all about the details. There was a system in place here that she had no problem taking advantage of when it behooved her. If she didn't promise to pay his loan back NO MATTER WHAT IF HE COULD NOT, he'd never have gotten the loan to begin with.
 
GFunk said:
And neither is the "let's forgive everything" mentality. Money is owed and needs to be paid back. Maybe if people donate to her or something. Shave some of that debt off for her, but it would still be getting repaid.
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The bank won't be taking the hit. Other patrons there would eat it through cost passed on to them. That is why you should read before you take on someone else's debt. Banks are in business to make money not the business of giving money away. If he took out a student loan at bank of TDK I bet Mr TDK wouldn't be so eager to forgive because he died. Sadly people die all the time owing money. They agreed to the terms of the loan with their signature. That was the time to understand the consequences.
 
I know when you co-sign a loan you are responsible for the life of that loan, which means if the borrower fails to pay no matter what his/her situation is then it is your ass. But in this case, the mother is a 61 yo lady without significant resource, she just lost her young son who left a little kid behind that she has take care of. C’mon Sallie Mae or Freddie Mae, have a heart. You ain’t gonna go broke for measly 10 Grand. For goodness sake, let it be this poor lady’s Christmas gift.

Honestly, I think instead of having a petition to go around, she should set up a website for donation, she had enough signature in there, if everyone gave like a dime she could have paid the entire loan back. I can see myself giving a good chunk of change to sad case like this.
 
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Refugee said:
I know when you co-sign a loan you are responsible for the life of that loan, which means if the borrower fails to pay no matter what his/her situation is then it is your ass. But in this case, the mother is a 61 yo lady without significant resource, she just lost her young son who left a little kid behind that she has take care of. C’mon Sallie Mae or Freddie Mae, have a heart. You ain’t gonna go break for measly 10 Grand. For goodness sake, let it be this poor lady’s Christmas gift.

Honestly, I think instead of having a petition to go around, she should set up a website for donation, she had enough signature in there, if everyone gave like a dime she could have paid the entire loan back. I can see myself giving a good chunk of change to sad case like this.
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This.

You should NEVER sign any loan documents if you have not read the fine print and pleading ignorance is not an excuse. Ever. Even if someone dies. Forgiving loans if someone dies only works in utopia and its like this in all the western world, I don't see the problem in this. People die.. many hundred years ago they knew this, what is the saying, in death, dept etc blabla?
Co-signing: everybody should know that means you are responsible for the dept if it is not payed as per the contract.

I recall a boyfriend a long, long time ago that wanted to buy a boat. The bank required him to either get a co-signer or a loan insurance. When he learned that his parents would owe on the boat if they cosigned - he opted for the loan insurance, which made it MUCH more expensive. The right thing to do, god bless him. He rolled his car 2 years later and died. Boat not payed, but the parents did not have to pay his dept and the bank owned a rocket boat.
 
FG said:
This.

You should NEVER sign any loan documents if you have not read the fine print and pleading ignorance is not an excuse. Ever. Even if someone dies. Forgiving loans if someone dies only works in utopia and its like this in all the western world, I don't see the problem in this. People die.. many hundred years ago they knew this, what is the saying, in death, dept etc blabla?
Co-signing: everybody should know that means you are responsible for the dept if it is not payed as per the contract.

I recall a boyfriend a long, long time ago that wanted to buy a boat. The bank required him to either get a co-signer or a loan insurance. When he learned that his parents would owe on the boat if they cosigned - he opted for the loan insurance, which made it MUCH more expensive. The right thing to do, god bless him. He rolled his car 2 years later and died. Boat not payed, but the parents did not have to pay his dept and the bank owned a rocket boat.
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What does that mean?
 
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