04.09.09 | Death & Permanent Disability Benefit
It’s not something that any of us want to think about, but it is a sad realty of life. If you take out a Stafford loan and something happens to you where you wind up permanently disabled or worse, the entire amount of the loan is forgiven.
I know when I was 18 I didn’t pay much attention to this fact, but when I went back to school at 30 with a wife and child I read the fine print. The last thing I wanted to do was put them in a bad situation if something unforeseen happened to me.
For a Parent Plus loan (which is a loan a parent takes out on behalf of the student), the forgivness extends to them as well in the event of death, but not in the case of permanent disability of the student for whom the parent borrowed the money for.
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