Sallie mae stopped consolidating loans
In contrast with some of the other federal student loan repayment, discharge and forgiveness issues, it’s really hard for the lenders and servicers to screw up the process for a death discharge. Your death discharge application gets sent to the servicer and/or lender if it’s not the Department of Education.
Sending an authenticated Death Certificate with it is really all there is to it because they can’t collect from the person if they’re dead anyway.
A local banker or account manager can give their client information on consolidating bills.
Online services provided by banks, credit unions, debt services may be a source of information as well as financial information blogs.
One can get information and help for consolidating bills and loans by going to a credit counselor.
These counselors can be easily located by asking a bank manager for references to qualified consultants. One benefit of consolidating your private and federal student loans is that it would lower your monthly payments.
The school or servicer verifies the information and the loan goes away. Private loans are completely different because they are like any other consumer debt and attaches to the estate.
You’ll usually have to send in a certified copy of the death certificate to the school (for a Federal Perkins Loan) or to the loan servicer (for a Direct Loan or FFEL Program loan).
Its purpose is to state their combined effect and so simplify the presentation of the law. A graduate is eligible for consolidating their undergraduate and graduate loans.
This is the best way to lower your repayments if you are a graduate.
If the school or servicer does contact the estate, the estate is going to verify the death and the discharge for the court. Image credit: Elite Pete During college I got a job with the financial aid office as part of a work study program.
There, I saw the dark side of the college financial aid system.
Unfortunately, as student loan debt climbs to stratospheric levels, many people ask me about the impact their debt will have on their loved ones after they die.