My dad took out $150K to pay for my Ivy League school and never told me. He died 4 years ago — am I on the hook?
My dad took out $150K to pay for my Ivy League school and never told me. He died 4 years ago — am I on the hook?
MoneywiseWed, March 11, 2026 at 3:01 PM UTC
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Student loan debt is a familiar problem for many Americans, as 42.8 million have federal loans totalling a staggering $1.693 trillion. With private student loans, the total student debt for Americans climbs to $1.833 trillion.
The average person owes $39,547 according to the Education Data Initiative (1), though other borrowers owe significantly more — and some even have to pick up the pieces of a loan left behind after the death of a parent.
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Consider Priya, who went to an Ivy League college with her first year was covered by scholarships and grants. For the other three years, her parents paid from their savings — or so she thought. Now, four years after graduating, Priya’s father has died. Her mother, who didn't handle the family finances, got a notice in the mail saying her dad’s estate owes $150,000 for Priya’s education.
Are Priya and her mother going to be responsible for paying this debt, or did the debt die with dad? Here's what you .
Understanding different student loan types
The first step is understanding that there are student loans for parents and student loans for students. This is true of both federal and private student loans.
When Priya’s dad took out loans, he could have done so in his daughter’s name, which would require her knowledge and agreement. He also might have borrowed money from the Department of Education in the form of Parent PLUS Loans (2) or from a private student lender in the form of parent loans.
Parents who take out these last two types of loans are solely responsible for them. So, Priya won't be responsible for the debt directly, as the loans were not taken out in her name, and Priya didn’t cosign for them.
However, this doesn't necessarily mean the debt just disappears. Depending on the kind of loans Priya’s Dad took out, the debt could be gone for good, or the lender could try to collect from her father’s estate, which would make it Priya’s problem.
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Understanding what creditors could go after
When someone dies with debt, usually the creditors cannot collect from surviving family members unless those family members:
*Cosigned for the loans or were joint borrowers
*Live in a community property state, were married to the borrower and the law says surviving spouses are responsible for certain kinds of debt acquired during the marriage (3)
However, creditors can try to collect from the estate or the assets that the deceased person left behind.
This means that, hypothetically, if Priya’s dad had $150,000 in a bank account when he passed away, the creditors could go after the estate, make a claim and potentially collect the money they were owed out of her dad's bank account (that she might have inherited otherwise).
If there's no money in the estate, then the creditors are going to be out of luck.
However, if there are assets, then they are usually up for grabs unless the deceased person did some estate planning during their lifetime to shield assets from creditors by passing them outside the probate process.
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And while creditors can normally try to collect from an estate, that may not be the case here, depending on whether dad took out private student loans or loans from the Department of Education.
The good news is that the Department of Education discharges Parent PLUS Loans upon the death of the parent, or upon the death of the student (4). So if Priya’s father took out federal loans, the government isn't going to come after the estate to get the money back.
But that's not necessarily the case with private student loans. As Earnest explains, sometimes private lenders offer a death discharge. But in other cases, the lender will try to get the money back from the estate of the deceased (5).
So, while Priya isn't responsible for the debt either way, the fate of her inheritance (or her mom's inheritance — and current financial well-being) will hinge upon whether the lender decides to attempt collecting from the estate and what assets remain. In this case, Priya’s dad’s individual lender's policy would determine what happens next.
In any case, it may come down to whether the court orders the loans paid. If that happens, Priya may want to try to help out, despite a lack of legal obligation to repay the unpaid balance.
What you can do if you are responsible for it
While Priya may be off the hook, aside from estate-side risks, her question highlights the importance of understanding the contractual agreements you take on when you sign a student loan agreement.
With 10% of federal student loan borrowers and 1.62% of private student loan borrowers delinquent on their payments as of the last quarter of 2025 (1), understanding the rules of repayment can help keep your debt manageable, and also potentially save you from negative impacts like a low credit score.
If you find yourself struggling with debt — whether from student loans or consumer debts like high credit card balances, Freedom Debt Relief can help negotiate settlements with your creditors until all of your enrolled debt is resolved. Speak with a certified debt relief consultant for free today to find out how much you can save.
Repay your debt with just one monthly deposit for peace of mind and an easier time managing your budget.
If you’re the parent of a student or a former student struggling with loans, the high cost of education can be a burden.
The latest data shows that the average cost of tuition is $9,750 for in-state schools and $28,386 for out-of-state (6). If you have to borrow to cover these costs, you could consider using the equity in your home via a HELOC loan. This can help you pay off your student debt at a better rate than a traditional loan.
With Figure, the HELOC application process is fast, fully online, and transparent. You can check your rate in minutes, complete the entire application digitally, and get funding in as little as five days. Unlike traditional HELOCs that let you borrow gradually, Figure gives you the full approved amount upfront.
Skip the in-person appraisal process and the long wait for underwriting approvals and tap into your home equity to take back control of your financial life.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Education Data Initiative (1), (6); Federal Student Aid (2), 4); Consumer Finance (3); Earnest (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Source: “AOL Money”
