<p>I’m comparing loans to loans. If a bank loans you, say, $25,000, on the condition that you get a co-signer, and then you die, why should the bank just kiss that money goodbye? I see that it would be nice for them to do so, and maybe sometines they do, but I can’t see any ethicial requirement that they should do so, especially if you could have bought life insurance.</p>
<p>I can imagine a very unfortunate situation in which the family buys life insurance, but the student commits suicide within the limitation period, and the insurance company doesn’t pay.</p>