Student loan debt in the US reached $1.6 trillion in June 2024. What happens if a parent dies with student loan debt? Dave may not be directly responsible for his dad’s $90,000 loan, but creditors can try to collect from the estate.

Parents are responsible for Parent PLUS Loans. If a parent dies with debt, creditors can try to collect from the estate. Federal loans are discharged upon the death of the borrower, but private lenders may try to collect from the estate.

Dave may not be responsible for his dad’s student loan debt, but the fate of his inheritance and financial wellbeing depends on the lender’s policy. If the court orders the loans paid, Dave may choose to help out despite no legal obligation.

Credible sources like Pew Research and Federal Student Aid provide data on student loans. Understanding the rules around student loan debt and estate obligations is crucial in navigating unexpected financial burdens.

Read more at Yahoo Finance: My dad died and I just learned he paid off my school tuition with $90,000 in loans. Am I now on the hook for this?