<p>I am honestly surprised and dismayed by many of the responsese on this thread. The parent co-signed the loan as a requirement of the bank. The goal was for the STUDENT to repay the loan with his or her future earnings after graduation. For goodness sake, the student died and obviously has no future earnings. The parents are likely devestated and possibly unable to work and have their own obligations. As Eastcoastcrazy stated, this is a very unusual situation and the bank could much more easily absorb this loss than the distraught parents who just lost their child.</p>
<p>A co-signer is for when the LIVING person who took the loan is unable or unwilling to pay. The loan should be discharged upon the death of the person who took it out, as it would be if a co-signer was not required. </p>
<p>I can’t believe that banks are in such dire circumstances that they can’t absorb the very rare occasion when a student dies unexpectedly. The banks undoubtedly figure some losses into their loan rates and make a lot of money on these loans.</p>
<p>What happened to compassion in business and in life?</p>