It’s hardly any secret that student loan debt is a major burden for individuals and families across the country. According to the Education Data Initiative, student loan debt in the United States totaled $1.745 trillion as of the third quarter of 2022. About 92.7% of all debt is federal student loans.
The average individual debt balance, when including both federal and private loans, is projected to be about $40,780, according to the same Education Data Initiative report.
So what happens if the worst occurs and the borrower passes away without having fully repaid their student debt? It’s an important question to consider. And the answer varies based on the type of loan in question.
What happens to federal student debt when you die?
The process for dealing with federal student debt in the event of a borrower’s passing is the most straightforward. According to the U.S. Department of Education