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Yeah it's pretty straightforward to pair a loan like this with life insurance (which is not only cheap for someone of college age but also generally requires no
by endianswap 10y ago
Yeah it's pretty straightforward to pair a loan like this with life insurance (which is not only cheap for someone of college age but also generally requires no medical exam).
- josephlord 10y agoThen it would also be pretty cheap for the lender to insure against borrower's death or to bear the low (amortised) cost. There is no reason a guarantor couldn't be responsible only for wilful failure to pay but not for after death. I'm not saying these things apply in the agreement under discussion or under the relevant laws but just that different structures are possible.
- ars 10y ago> Then it would also be pretty cheap for the lender to insure against borrower's death It would. It would be so cheap for them that they might as well just cut out the middleman and self insure. AKA just forgive the debt and that's all. Which apparently everyone else does, except NJ.
- pkaye 10y agoThat is a good idea. For someone that age, it would be quite cheap and probably could get rolled in with auto insurance for more savings. A $50K policy would cover the average college debt.