Shoptalk 530, November 17, 2009

Policy Resources

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Q.: If a PLUS Loan borrower uses an endorser, and the PLUS loan borrower dies, can the lender collect the loan proceeds from the endorser?

A.: No, the lender may not collect the loan proceeds from the endorser. According to §682(b)(1), if an individual borrower dies, or the student for whom a parent received a PLUS loan dies, the obligation of the borrower and any endorser to make any further payments on the loan is discharged.

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