Parents Facing Deceased Daughter’s Student Loan Debts

Posted on August 6, 2014 at 4:48pm by

The front page of CNN Money recently had a heartbreaking story about two parents that suddenly lost their 27-year-old daughter and the resulting financial hardships of being co-signors for her private student loans. The article, written by Blake Ellis covers a topic that is becoming more and more common.

The parents, Steve and Danielle Mason, understandably so, immediately took in their daughter’s three children (all under the age of 10) to raise them after her unexpected death. In addition to the added financial responsibility of suddenly raising three additional children, it was not long before they began receiving calls about their daughter’s student loan debts.

Their daughter Lisa had taken out $100,000 in private student loans in order to complete her nursing school education. Her parents co-signed, and as such, are responsible for those debts in the event Lisa was unable or did not pay them back. While trying to recover from the devastating loss of their daughter and provide for their grandchildren, the loan balances had risen to $200,000 and some had interest rates as high as 12%.

Steve Mason has considered bankruptcy, but recognizes that student loans are very difficult to discharge in bankruptcy. It is true that generally, student loans are non-dischargeable. However, if you can prove an “undue hardship” it may qualify. The determination of an undue hardship is an uphill battle and will depend on a multiple factors and applicable case law interpretation, but it is not impossible.

The Sader Law Firm has written several articles on Student Loans and Bankruptcy. During our decades of helping clients in Kansas City we have had numerous clients facing daunting student loans. While in most situations student loans cannot be discharged, our experienced bankruptcy attorney Megan Dennis has had success in reducing student loans in bankruptcy with the potential to discharge significant portions.

Every person’s financial circumstances are unique based on factors such as a person’s age, profession, student loan type, amount, interest rate, and many others. If If you are facing financial hardship as a result of student loans or other debts, give one of our experienced Kansas City bankruptcy attorneys a call for a free consultation. We will discuss your bankruptcy options with, no obligation, to determine if bankruptcy may be right for you.