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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Consumer Protection Law
Satisfied Customers: 16721
Experience:  Experienced Licensed Attorney
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My daughter just finished school and has been making payments

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My daughter just finished school and has been making payments on time every month. She had her grandmother cosign a loan for $15,273.47. Grandmother unexpectedly passed away and now she has to pay the $15,273.47 by the end of the month or they go after grandmothers assets? Is there any recourse to this issue?
Hello. My name is XXXXX XXXXX I will be happy to answer your question.

I am sorry to hear about this unfortunate situation.

Does the grandmother have an estate that has enough money to pay this student loan?
Customer: replied 4 years ago.

Yes, unfortunately she does.

Dear XXXXXnie,

Thank you for your follow up.

Does the student loan agreement state that the full amount of the student loan would become due in full, if one of the borrowers passes away (they usually do)?
Customer: replied 4 years ago.

Yes, but hidden away in the small print. I could understand if we were not making payments but nobody can take that kind of hit on their assets

Dear XXXXXnie,

Thank you for your follow up.

Unfortunately, if the contract that your daughter and the late grandmother signed does state that the entire student loan becomes due upon the death of one of the borrowers, in that case I am afraid that either the full amount can be voluntarily paid by the executor of the grandmother's estate or the student loan company will be able to file a lawsuit against an estate and will likely prevail and then the estate might also be liable for the loan company attorney's fees and court costs which can be in thousands and in some cases tens of thousands.

I am sorry to provide you with this unwelcome answer, but the law is clear on similar situations and I do have professional obligation to provide customers with correct information, even when the information is not favorable to the customer under the law.

I wish you the best of luck!
Alex J. Esq. and other Consumer Protection Law Specialists are ready to help you
Dear XXXXXnie,

Do you have any related follow up questions for me?