Private College Student Loan

If I were to die, would my husband need to pay my student loans?

I am debating whether I should get more life insurance to cover what I owe on my student loans if I were to die tragically. I already get some free life insurance from work, about $16,000, but I can pay extra to get around $50,000. I owe about $40,000 on my loans. They are the federal loans, both subsidized and unsubsidized through NelNet. My husband didn't even know me when I acquired the loans. I just wanted to know b/c I could use the extra money on my paycheck every week instead of buying extra insurance at this point in time when I have little assets and no children. I don't plan on dying or anything - not sick, not suicidal. It's a "just in case" sort of thing b/c the last thing I want is for him to be responsible for my stuff if I ever die. I know all about disability and how life insurance goes up, etc...please try to just answer my question instead of trying to help with all my other financial issues. I have insurance and disability and home owners insurance. I have my bases covered as far as those things go, I just have a general question about student loans. I just don't want to pay for EXTRA life insurance now if it is not necessary. PS. my life insurance premium will go up anyway as my pay increases accoridng to my current plan, so I'm not worried about the cost. Also, I'm not going to wait until I'm 40 or 50 to get life insurance again, just until I have kids, like in 5 years. Thanks for the advice though! :)

Public Comments

1. i afraid you are going to be stuck with the loans
2. You should meet with a financial planner because you currently have a lot of financial issues that you face and will have many more issues over your life. Do you plan on working at your current job until retirement? It is very rare for someone to stay at their job for more than 10 years anymore. Read the newspaper headlines about job losses). If you rely on the life insurance from your employer, what happens if you buy a house, have 2 children and then get really sick and have to stop working? Your insurance disappears. Then you have to look for your own life insurance policy while you are sick. Insurance companies don't like to issue new policies to people with health problems. Bottom line: You need your own life insurance separate from what you employer offers. You sound like you are just starting out in life. That means that the insurance will be very cheap. Life insurance gets more expensive, the longer you wait to get it. Would your husband manage to pay all the bills without your income? Would you be able to pay all the bills without his income? What if one of you became sick but didn't die but also had to stop working? That is what Disability Income Insurance covers - it replaces your paycheck (think about the AFLAC duck commercials). Now is the time to start mapping out your life - how you want to live, the houses, cars, vacations, family etc. etc. All of these take money. You can't completely avoid risk - risk of death, illness or accidents. You can prepare for those unwanted events. Meet with professionals - financial planners, attorneys, insurance agents, etc. who can help you plan out your future and take the rights steps to get there. Good Luck [ : ]
3. No.. He wouldn't have to pay any of your bills.
4. He would not have to pay your student loans. But, you may want to increase it anyway. $16,000 is just enough to bury you and maybe cover a month or two expenses if he takes some time off work to grieve. If his pay alone will not cover your household expenses, then you want some more insurance let him stay in the house for at least a year. If your takehome pay is $2,000 a month (or $25,000 a year), then that is a good amount of insurance to buy for someone in your situation. Obviously you will need more if you have children.
5. He is not a cosigner in any way ... then he is not liable. Only the consigner would be oblighated to pay on your death. It is a stretch but they will try to recover the amount from the co signer. With a $40,000 balance, they may try to sue the estate. That is a considerable amount of money. There I would ask a lawyer what would happen.
6. Most likely they are not inheritable, by your husband, BUT, your estate would stand good for them. So if you jointly own the house, your half of the house would have to be sold to pay off your debts. If you have no joint assets, it "goes away" when you die.