united-states finance
Can US student loans be inherited by children or parents?
<p>Just curious if there are conditions where student loans can be inherited by family members that did not co-sign on the loan?  </p>

<p>I will assume for this question you are referring to a US Department of Education backed loan. In that case, according to the <a href="https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation#death-discharge" rel="noreferrer">US DoE website</a>:</p>
<blockquote>
<p>If you, the borrower, die, then your federal student loans will be discharged.  If you are a parent PLUS loan borrower, then the loan may be discharged if you die, or if the student on whose behalf you obtained the loan dies.</p>
<p>The loan will be discharged if a family member or other representative provides 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). For more information, contact your loan servicer.</p>
</blockquote>
<p>If, however, it is a private student loan, it will have to be paid by the estate.</p>

<p>I am not a lawyer. This depends entirely on jurisdiction and the specific laws therein.</p>

<p>The common law rule of inheritance is that all creditors (which the lender would be) make claims on the estate. After these are paid, any remaining assets are distributed in accordance with the will or applicable law. If there are insufficient assets to satisfy all creditors then the estate is bankrupt and applicable bankruptcy laws kick in; generally secured creditors are paid and unsecured creditors divide up whatever is left in proportion to their debt.</p>

<p>So, no, debt cannot be inherited.</p>
