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|Subject: Re: IRA withdrawal for college costs||Date: 5/9/2012 3:16 PM|
|Author: SeattlePioneer||Number: 305133 of 311352|
<<No they don't. If you have assets a creditor collect against them.
I wouldn't spend your time calling college students pathetic - it took little to google for this. >>
Nice try, but you need to read what your link says. If it's a parent that took out or guaranteed the loan and the students dies, the parent is relieved of the obligation to repay the loan.
Presumably the creditor can collect against the assets of the student beneficiary.
Letting a parent off the hook for loans they took out because the kid dies sounds like a foolish practice to me.
I'd give you half a point for discovering this. But presumably the estate of the kid is still on the hook for repaying the loan.
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