Student loans have become a part of the educational landscape, with 65% of today’s college students saying that they’ll graduate with some debt, according to statistics reported by . This includes a national student loan balance of more than $1.6 trillion, including a private student loan balance of $135 billion.

For those who have cosigned student loans, one of the often-overlooked financial protections is life insurance. Here’s what you need to know about life insurance for student loans, and when it makes sense.

What Happens When a Student Loan Borrower Dies?

In general, life insurance is designed to cover final expenses and take care of certain obligations, like debt, left by the deceased. When it comes to life insurance related to student loan debt, the first thing to know is what happens when a borrower passes.

With federal student loans, when the borrower dies, the remaining balance is normally discharged once the death has been properly documented. This also applies to parent PLUS loans. In fact, with PLUS loans, the remainder is normally discharged if either the parent or the student involved passes. Lees verder →