There is well 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 whether of the borrower or the recipient dies before the full payment of the student loan that they acquired, the loan can be canceled with death as its basis.
Like in the case of a mom 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 mom is considered as the borrower. This will also apply if the father co-signed the application. Normally, people would think that the promulgation would be transferred to him as a co-signatory, but under this law, he does not have to pay for the remaining essential and interest of the loan upon the death of his spouse who is the loan borrower.
Death As a Basis For learner Loan Cancellation
No comments:
Post a Comment