Did you know that private student loans can haunt your family from beyond the grave?
The Wall Street Journal ran a story about how private lenders came after one family following the accidental death of their 25-year-old son. Unfortunately, it’s an all too common practice for private student loan lenders to pursue grieving families who are being stuck with the bill.
This latest outrage has created momentum for a Student Loan Protection Act to fight back on behalf of bereaving families.
Big Banks Wells Fargo and Citibank have both been sleazily pursuing families after student deaths. Citibank believes that their policies are generally consistent with other student loan lenders. Sallie Mae however, is introducing loan forgiveness on select notes following the death of a college student
Clark Howard states that when borrowing for college, be sure to max out whatever federal loans you are offered. If your college expenses exceed your federal loans, consider going to a cheaper school, pick up extra work or do whatever else you have to do to avoid private student loans at all cost.