New Jersey Paves Way for Student Debt Discharge after Death

Imagine the trauma of losing a child only to have the nightmare continue when letters and calls start arriving demanding payment on the deceased child’s student loan. That has been the plight parents face when they co-sign for a private student loan and then the unthinkable happens. In November 2016, the state legislature of New Jersey put an end to that with a new law that requires student loan lenders to discharge student debt in the event of a death or disability. The new law was in response to mounting outrage over the merciless practices of the state’s loan agency, which is responsible for nearly $2 billion outstanding loans.