Student loans during legacy years typically involve debt carried from earlier life stages rather than new borrowing, as taking on new student loans at this age would be financially irrational.

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If you’re still carrying your own student debt, understand that while most debts are forgiven at death (becoming estate liabilities paid from available assets), federal student loans are generally discharged upon death without estate claims. However, Parent PLUS loans you co-signed for children may complicate matters. Private student loans could become estate obligations, potentially reducing inheritances.

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If monthly payments are burdensome, federal loans offer income-driven repayment (IDR) plans that may reduce payments to zero based on limited retirement income, with remaining balances potentially forgiven (though forgiveness may create a tax liability). Focus on managing these loans minimally while preserving resources for your care needs.

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Don’t sacrifice your quality of life or deplete savings to aggressively repay student loans at this stage—your well-being takes precedence. If family members pressure you to repay debt to preserve inheritance, remind them that your security comes first.

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Document all student loans in your estate planning materials so executors understand which debts will be discharged at death versus those that must be paid from estate assets. Absolutely do not take new student loans to fund grandchildren’s or great-grandchildren’s education—gift only what you can afford from available income or assets without borrowing.

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Your legacy should be financial stability and peace of mind through your final years, not debt that complicates estate settlement or depletes resources needed for your care.

 

Additional Student Loan Resources:​​

• Student Loan Debt Consolidation

• Student Loan Derferment and Forbearance