Student Loans and Death question.

Prothet_of_Doom

I have a question or 3.

If someone have an outstanding student loan debt, and money or assets like a house and were to die, does the money and assets in their estate have to be sold to pay off the debt ?

Or because they no longer have an income, (due to not being able to actually get up to go to work), then the debt would eventually be written off.

I ask this because say that person was a single parent and had taken out life insurance to protect their loved one's it would mean that the there would be less in the estate? It might even mean that a jointly owned house would have to be sold.

anyway answers welcomed by those who read the small print.

CakeCrusader

Student loans are written off if the lender dies. https://www.slc.co.uk/students-and-customers/loan-repayment/loan-cancellation-and-refund-information/cancellation-disability-or-death.aspx

Prothet_of_Doom

Simple answer is to find and read the small print. Cheers

CakeCrusader

It takes a few seconds to do a google search. Type in what you're looking for and there it is

Ed-1

CakeCrusader wrote: »

Student loans are written off if the lender dies. https://www.slc.co.uk/students-and-customers/loan-repayment/loan-cancellation-and-refund-information/cancellation-disability-or-death.aspx

*you mean borrower

http://www.legislation.gov.uk/uksi/2009/470/regulation/19/made
as amended by
http://www.legislation.gov.uk/uksi/2012/1309/regulation/7/made
http://www.legislation.gov.uk/uksi/2013/607/regulation/5/made
http://www.legislation.gov.uk/uksi/2017/831/regulation/11/made

(3) The Authority or loan purchaser must cancel the borrower’s liability to repay the student loan or the postgraduate master's degree loan when one of the following occurs—

(a) the borrower dies;
(b) the borrower receives a disability-related benefit and because of the disability is permanently unfit for work;
(c) in the case of post-2006 student loans, the 25th anniversary of the date on which the borrower became liable to repay the student loan;
(d) in the case of student loans which are not post-2006 student loans and not post-2012 student loans, the borrower reaches the age of 65;
(e) in the case of post-2012 student loans, the 30th anniversary of the date on which the borrower became liable to repay the student loan;
(f) in the case of post-2012 student loans for Access to HE Diplomas where a borrower has achieved at least one Access to HE Diploma and the Authority is satisfied that the borrower, who was an eligible borrower, completes a designated course; or
(g) in the case of a postgraduate master’s degree loan, the 30th anniversary of the date on which the borrower became liable to repay the postgraduate master’s degree loan.

CakeCrusader

Yup, that's the one. Sorry, I was trying to multi task (and doing a bad job).