Wells Fargo To Forgive Loans In Student Death, Disability .

[PBS Poll-435]

By MELISSA KORN
WSJ Online

Wells Fargo & Co. is changing the terms of its private student loan agreements, forgiving loans beginning Friday if a student beneficiary dies or is permanently disabled.

Previously, a student borrower's co-signer -- often a family member -- was required to continue repaying the loan, even if the student died or became incapacitated

Not all major lenders are so forgiving. Student Loan Corp. (STU), whose shareholders Thursday agreed to sell its student loan operations to Discover Financial Services, doesn't offer relief to co-signers upon the death or incapacitation of a primary student borrower. Student Loan currently is 80% owned by Citigroup Inc..

A representative from Discover wasn't immediately available for comment.



more at... http://online.wsj.com/article/SB10001424052748704034804576025502046535830.html

[Ruby the Liberal]

1. As it should be.

Student loans being required to be paid by a relative when the borrower/student is disabled or dead?

What a racket.

[JVS]

2. It's to stop students from gaming the system by killing themselves when they can't find a job.

;-)

[sammytko]

6. They said the co-signer

Isn't that what happens with any other loan that requires a co-signer?

[Ruby the Liberal]

12. I am in my 40s and fresh out of Grad school

No co-signer, but my 'exit interview' for Sallie Mae required name/phone/address of my nearest living relative as well as TWO (2) additional "references" name/address/phone. For this very reason - debt is not forgiven for death/disability.

I closed the webpage without saving it.

Maybe Wells is only referencing co-signed loan docs, but I can assure you - Sallie Mae isn't making the same exemption.

(On another note - the OP references 'private loan agreements' which could only reference loans above and beyond Stafford guaranteed, ie, personal loans for 'living expenses' not tuition, books and fees.)

[PurityOfEssence]

3. And for turnips, too...

(Well, after the first few wrings, that is.)

[phasma ex machina]

4. Awww. The kinder, gentler side of the very same bankster that committed felony fraud in

foreclosuregate.

[Turbineguy]

5. Winning hearts and minds

do they take out peasant insurance?

[originalpckelly]

7. They decided to finally stop beating their wives.

You get it.

Fuckers. Shouldn't even be doing that in the first place.

[PBS Poll-435]

8. If you took out a car loan and had your Mother co-sign, then no matter what happens to you

She would have to pay for it.

Same with a credit card, line of credit, home loan, etc...



TPTB realized that a student loan is intangible.

[originalpckelly]

10. I agree.

That seems to be the real reason, I was complaining because I understand that. A college education doesn't do a corpse much good. And I, of course, hold the view that tertiary education should be the norm and free, like public high school. If it's that important for someone to go, then they should be invested in. It's sad that the UK just decided to reverse their policy on this matter. I'd like to see us emulate the older policy.

[Zoeisright]

9. Gee. How sweet.

Of course they should all do that. And fuck Citigroup.

[Creative]

11. I imagine Citigroup will be watching this very closely.

If Wells Fargo begins to increase their share of the market, Citigroup and others may be forced to adjust their policies.

[Sirveri]

13. How does an entity collect a student loan from a bankrupt estate?

If someone is a student and they die penniless they already wrote it off, I fail to see how this is news other than the disabled thing (which they could likely get chucked off during a bankruptcy).

[PBS Poll-435]

14. Co-signing a loan

Assuming the co-signor is still alive.