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It's A Little Extreme Way To Get Out Of Debt, But It Works
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Here's a dilemma: A guy had about $51,000 in student loan debt when he died. His father had been a co-signer for the loans. The bank came after him for the money. After his brother conducted a social media blitz against the bank, the bank agreed to forgive the loan. But does that make the whole idea of co-signing irrelevant? The death is tragic, but it doesn't wipe away the fact that the bank DID hand over the money and that the co-signing was intended to cover just such a situation. (By the way, death doesn't wipe out other debts and responsibilities; the estate, whatever there is, is supposed to pay off the bills) On the other side, now that the bank has relented, the estate -- meaning the family -- will be on the hook for taxes, because debt forgiveness is treated like you were paid the money. At least it's a lot less than $51,000. (Cleveland Plain Dealer)
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