Being murdered is no reason to forgive student loan, New Jersey agency says

[Xaikar]

You mean she's still responsible for the debt she co-signed for? That's how it works.

If your spouse dies, and you both have a mortgage, you don't get to write off the debt and keep the house.

Except when the Son died the Mom doesn't get to keep the education.

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That's the crux of the issue, yes.

We know it, the schools know it, the government knows it, but no one really cares to do anything about it.

Meanwhile we're constantly shoving "Get a Degree" and "Do STEM stuff" down the throats of kids in public school, then eagerly wait to kick them squarely in the nuts the moment they graduate and look for ways to get into those colleges.

This whole post made me happy as its a perfect description of how I feel.

[vindicatorx]

I see nothing wrong with linking the source, what is your problem?

in general besides gnomes? I hate it when A) Gnomes bust in and don't add to the conversation. It's not just me that hates that either that's an infractionable offense. B) I don't see a point in linking an article when you just quoted the whole thing. I mean why do so? You didn't change anything it's 100% the whole article.

[unbound]

Hmm mph, the gov't acting like a loan shark, why am I not surprised. Shit like this is EXACTLY why gov't should stay out of the student loan industry.

lol...you think loan sharks are bad? You should see the real professional businesses like banks working. They make loan sharks look like good guys.

When my grandfather died, the banks were all over my father (executor of the estate) trying to get money to pay back loans. It didn't matter that the banks should have known better than to loan a very old man that kind of money, and they harassed my father endlessly for years. You ever see a loan shark evict people, sometimes the wrong people, out of their homes? Banks do all kinds of bad things.

That said, the NJ agency is doing exactly what conservatives have been asking for over and over again. That the government acts like a business. There you have it. Next time they should actually think about what they really want before asking for it...

[McFuu]

Except when the Son died the Mom doesn't get to keep the education.

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This whole post made me happy as its a perfect description of how I feel.

This is pretty much how all co-signing works. You have to take the other lendee to court to gain ownership on whatever product they aren't paying dues on.

[Aori]

I never heard of people having to co-sign to get a student loan. The right thing to do would be to forgive the debt, it isn't like the mother gets anything out of it. Though that is just how it goes.

Hell years later I'm getting calls from debt collectors for my ex. They're trying to get ME to pay for her debts. They're relentless and they give no fucks.

[Deleted]

Lately I'm starting to feel like many of the people left around here are so self-centered they wouldn't give a shit about someone at any point ever.
Either that or brainwashed to think that if something is law, it means it's perfect and should be followed to the letter because there are no bad laws ever.

Now, onto the story. Per short:
-education is too expensive
-the bank who gave the loan are greedy bastards
-if the person dies and it's not a good that can be used (like a car), the debt should be forgiven
-"but you should never co-sign anything" argument is stupid because of the first point I made. Essentially there is a chance that if nobody had signed for this student, the bank would not have given him any loan and he would not have went to college at all. So, due to the price of education, this might not have been an option.
-unlike a house or a car, his family or loved ones no longer benefit from his education. he's dead, and all the education he got is meaningless. You can still ride a dead person's car or live in their house.

[McFuu]

lol...you think loan sharks are bad? You should see the real professional businesses like banks working. They make loan sharks look like good guys.

When my grandfather died, the banks were all over my father (executor of the estate) trying to get money to pay back loans. It didn't matter that the banks should have known better than to loan a very old man that kind of money, and they harassed my father endlessly for years. You ever see a loan shark evict people, sometimes the wrong people, out of their homes? Banks do all kinds of bad things.

That said, the NJ agency is doing exactly what conservatives have been asking for over and over again. That the government acts like a business. There you have it. Next time they should actually think about what they really want before asking for it...

There are a ton of laws that deal with this kind of debt after death BS. But it basically comes down to, if the person has debt upon death, the collectors can take what they need to satisfy that debt. If it exceeds what the dead has in assets they are SOL. But they will try to make the next of kin think that they now owe. In reality your parents debt, your spouses debt, etc... is not your debt unless you signed on the line with them. Than it is your debt and you need to satisfy the collections agency.

[Deleted]

This is pretty much how all co-signing works. You have to take the other lendee to court to gain ownership on whatever product they aren't paying dues on.

Oh, that's nice, so the mother can get the education just like she can get a car? Just have a judge say "you win, here's your education, use it wisely" and poof, all her son learned is transfered into her? Because if that's not the case, this is not at all the same as with a car.

[DarkTZeratul]

One, if they popped their clogs tonight, and I inherited this house, I'd have the responsibility to clear the remaining payments,

That's because the debt is attached to a piece of property that is changing hands. If the debt is not paid, then ownership of the property would revert to the bank. Such isn't the case with student loans, because the bank can't "take back" the dead kid's education.

[McFuu]

Oh, that's nice, so the mother can get the education just like she can get a car? Just have a judge say "you win, here's your education, use it wisely" and poof, all her son learned is transfered into her? Because if that's not the case, this is not at all the same as with a car.

Well this opens up the rabbit hole on if loans for items such as education are even economically feasible. Considering the amount of student loan debt in the US, obviously the next bubble to burst will be the education bubble. It's pretty close now where there is no reasonable way that most students can attend an out of state college and be fiscally independent at any point. It's pretty similar to the housing bubble, except the government is doing the lion share of the lending and is making no attempt to vet if the lendee will ever be able to reasonably repay these $100k plus loans they are being approved to take on.

If she wanted to make a statement about the sham that is the secondary education system in this country, she should sue her dead son for his degree. But I doubt this poor woman has the means nor the will power after losing her son, than take her son's estate to court, which ironically she probably is executor of.

[Rotted]

That's because the debt is attached to a piece of property that is changing hands. If the debt is not paid, then ownership of the property would revert to the bank. Such isn't the case with student loans, because the bank can't "take back" the dead kid's education.

Again, just a reminder UK here. (also could be completely ignorant)

But our student loans come through a government company, not the actual bank. I'm not sure if that would make a difference?

[Tijuana]

Im not exactly sure what I think on this.

Obv its beyond imagination what she's been through,

But if it was vis versa, the child would inherit the debts of the parents no? Should a student loan be different? I'm pretty glad I don't have to be the person to decide this

Absolutely not, not in America, ever. The child is not guilty for the sins of the father in the western world. The only factor even remotely leaning that direction is that a dead persons assets must stand for their debts. After that, there is no legal way to pursue any of the debt from the would be heirs.

[Kapadons]

Reason 45671 not to live in New Jersey.

[McFuu]

Again, just a reminder UK here. (also could be completely ignorant)

But our student loans come through a government company, not the actual bank. I'm not sure if that would make a difference?

Most American student loans are federal or state government loans as well. You can have private financial student loans, but it's rare, mainly because private can't compete with government for loan rates. As well as the government has way more control to exert over your finances to recoup their loan; namely you can't default (file for bankruptcy) on government loans. The amount will follow you after the court preceding.

[NoRest4Wicked]

That's pretty much what happens when you co-sign. This is why you do not co-sign any loan you are not willing to pay off in on your own.

[Spiffums]

Well, she co-signed on the loan. That's what co-signing means, you're liable if the primary defaults for any reason.

Sure, the whole "son got murdered" thing adds an emotional angle to it, but again: she co-signed the loan. That's what that entire concept is built around.

Yup! Her son is off the hook but she isn't.

[Underverse]

Hmm mph, the gov't acting like a loan shark, why am I not surprised. Shit like this is EXACTLY why gov't should stay out of the student loan industry.

New Jersey’s loans, which currently total $1.9 billion, are unlike those of any other government lending program for students in the country. They come with extraordinarily stringent rules that can easily lead to financial ruin. Repayments cannot be adjusted based on income, and borrowers who are unemployed or facing other financial hardships are given few breaks.

Your anti-government bias is staggering. I'm questioning your ability to reason right now.

[Theinquisition]

Only one of those quotes is mine, you realize that right?

also...please tell me how gov't backed student loans HAVEN'T raised the price of college.

[Rotted]

Absolutely not, not in America, ever. The child is not guilty for the sins of the father in the western world. The only factor even remotely leaning that direction is that a dead persons assets must stand for their debts. After that, there is no legal way to pursue any of the debt from the would be heirs.

See I'm not sure if I agree. Don't get me wrong it sucks.

But my folks have a lovely farm house here in the UK. More specific its in Wales, in one of the most rural locations you can get. Long story short, its worthless, Two kitchens, huge lounge, office, conservatory, 3 bedrooms, storage rooms (essentially small cupboards built into rooms), it also has a front garden, a top garden, and two orchards with sheds and a plethora of fruit trees.

Now a long story short, they had a tiny house, a petrol leak incident left them broke and renting multiple properties for about 11 years. Until we found this house, we rented it and got offered to buy it at a decent rate. We got a mortgage and to this day we're still (or my folks)are still paying it. rough estimate, in about 5 years it'll be cleared. If they pop their clogs in less than that, I inherit a house which will be about £180,000 (yes its a really shitty locations, reducing its value), but I'll also have an excess of around 30k left to pay on it.

As far as I'm aware, that would be what you called a asset? I have to be honest, I think if I inherited that debt, for this house, I'd be more than happy to contuine those payments. Regardless its a fucking good price for the property, I'd feel bound to finish paying it tbh.

[Traveler Voltin]

Why even bother linking the article when you fucking quoted the whole thing? Yeah read this 3 days ago when it was posted on Yahoo or whatever site. It sucks for the parent there is not much they can do. What else is there to say? I mean you take out a loan to buy a house you don't have insurance and the house burns down you think they just say oh that sucks for us you totally don't have to pay us back? School loans are an investment just like any other loan.

its called citing the source. to prove its not fake.
idiot.

Infracted - minor flaming