If there is a less appealing subject to think about than death, it’s student loans. So what happens when you combine the two? Depending on what kind of loan you have, your student loans could outlive you, meaning your debt will be passed to your loved ones.

Private student loans, while some offer a death discharge, are often treated like personal loans. If you still have debt when you die, they can come after your estate. If the loan is only in your name, though, your relatives aren’t typically responsible for that debt.

Cosigners, however, can be responsible for carried-over debt. Cosigners are responsible for a loan if you are unable to pay or if you die, and sometimes death can trigger loan default, where the entire remaining balance is due at once. Parents are often cosigners for their children, and some buy life insurance policies for their children so that if a child dies with student loan debt, the insurance money can help cover that debt.  

Loans that are taken during marriage are also liabilities in several states. Even if you take out loans before marriage, spouses can be liable if they cosigned for the loan.

Parent Plus loans are a different story. With these loans, parents are fully expected to repay the loan. If either the parent or the student dies, the debt is discharged although discharged debt on account of the student’s death is treated as taxable income for the parents. 

Finally, federal student loans are the best option if you’re expecting an early death. These loans are discharged upon presentation of your death certificate and the debt is not passed to anyone else. 

To read the full article in USA Today College, click here.