Debt After Death

When a young person dies unexpectedly, his or her family could end up with the burden of paying off student loans. Can that be avoided?

What would happen to all of your debt if you died?

That’s a morbid question, but it’s a pretty important one, even for young adults. Back in 2012, ProPublica told the story of Francisco Reynoso, a gardener from Palmdale, California, whose son was killed in a car accident on the way home from a job interview. Reynoso, who made $21,000 a year, was held liable for paying off his son’s student-loan debt, which numbered in the six figures. READ MORE >