Did you ever wonder what happens to your student loans if you die? We recently received this question from a reader:
If the borrower of a student loan dies, is the spouse liable for that loan? Maybe, maybe not. With traditional loans, as long as the spouse is not listed as a co-signer or joint account holder, he or she is not legally liable for the debt — unless you live in a community property state.
If you live in a community property state and your spouse dies, you’re typically liable for your spouse’s debt, regardless of whether your name was on the original loan or not. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Alaska has an optional community property provision for couples who choose to opt into a community property agreement.