The only things that are certain in life, it seems. If one of these things doesn't look like the other, it's because it isn't.
Student loans persist throughout school and then life, but the unfortunate truth is that they're now following us even longer. Steve and Darnelle Mason know this better than anybody. Their 27 year old daughter Lisa passed away suddenly from liver failure, leaving behind three children. Steve and Darnelle took them in, though their income is meager.
There budget was already stretched, but they had little idea it was about to get a lot worse. Lisa had taken out $100,000 in private student loans, and her father had co-signed. When Lisa passed away, Steve and Darnelle struggled to keep up with monthly payments and the loan balance quickly doubled. Interest rates got as high as 12%.
Lisa's death did nothing to stop the student loans--her father is now searching for a second job that will allow him to make the $2,000 per month payments. When loans are federal, they can be discharged or otherwise reduced--but private loans don't offer the same forgiveness or even flexibility. Steve Mason had to pay.
So he tried calling the lender, to no avail. While they sympathized with him, they informed the family that they were not required to do anything. Federal regulations do not extend to private loans, meaning that borrowers and co-signers are responsible, even during financial or personal hardship. Loan forgiveness is instead up to the individual discretion of the lender.
One such company, Navient Corp, reduced the balance and lowered interest rates and payments for the loan, and says that they offer different payment plans, etc. to customers on a case by case basis. They're being fairly accommodating, but a large portion of the debt remains.
And most of Lisa's loans aren't managed by Navient Corp, but by National Collegiate Trust, who has refused to accommodate the debt in any way--and also to comment. Unfortunately, even bankruptcy won't save the family, as student loans fall outside of it.
The Mason family is not the first to be faced with such bad behavior in the case of tragedy. There are horror stories all across the internet with similar outcomes--few of them end with the bank offering loan forgiveness to grieving families.
Some work has been done to combat such occurrences, though nothing has been passed in Congress. In the meantime, parents can only negotiate with private lenders--the last thing on their mind in the face of losing a child.
When companies exhibit such unforgiving behavior, it becomes clear why more students are questioning the decision to attend college. As federal loans fail to provide enough financial support to cover the rising cost of an education, many are forced to look into private lending--but the cost is so high.
Student loan debt, while long a long a source of stress and trouble , is becoming something that won't go away--even in death.
What do you think? Should grieving families be responsible for paying down the educational debts of their loved ones?
Student loans persist throughout school and then life, but the unfortunate truth is that they're now following us even longer. Steve and Darnelle Mason know this better than anybody. Their 27 year old daughter Lisa passed away suddenly from liver failure, leaving behind three children. Steve and Darnelle took them in, though their income is meager.
There budget was already stretched, but they had little idea it was about to get a lot worse. Lisa had taken out $100,000 in private student loans, and her father had co-signed. When Lisa passed away, Steve and Darnelle struggled to keep up with monthly payments and the loan balance quickly doubled. Interest rates got as high as 12%.
Lisa's death did nothing to stop the student loans--her father is now searching for a second job that will allow him to make the $2,000 per month payments. When loans are federal, they can be discharged or otherwise reduced--but private loans don't offer the same forgiveness or even flexibility. Steve Mason had to pay.
So he tried calling the lender, to no avail. While they sympathized with him, they informed the family that they were not required to do anything. Federal regulations do not extend to private loans, meaning that borrowers and co-signers are responsible, even during financial or personal hardship. Loan forgiveness is instead up to the individual discretion of the lender.
One such company, Navient Corp, reduced the balance and lowered interest rates and payments for the loan, and says that they offer different payment plans, etc. to customers on a case by case basis. They're being fairly accommodating, but a large portion of the debt remains.
And most of Lisa's loans aren't managed by Navient Corp, but by National Collegiate Trust, who has refused to accommodate the debt in any way--and also to comment. Unfortunately, even bankruptcy won't save the family, as student loans fall outside of it.
The Mason family is not the first to be faced with such bad behavior in the case of tragedy. There are horror stories all across the internet with similar outcomes--few of them end with the bank offering loan forgiveness to grieving families.
Some work has been done to combat such occurrences, though nothing has been passed in Congress. In the meantime, parents can only negotiate with private lenders--the last thing on their mind in the face of losing a child.
When companies exhibit such unforgiving behavior, it becomes clear why more students are questioning the decision to attend college. As federal loans fail to provide enough financial support to cover the rising cost of an education, many are forced to look into private lending--but the cost is so high.
Student loan debt, while long a long a source of stress and trouble , is becoming something that won't go away--even in death.
What do you think? Should grieving families be responsible for paying down the educational debts of their loved ones?
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