<p>I have seen some of the threads on here about grandparents loaning money for college. It was suggested that the grandparents could later decide to forgive the loan should they wish. I know there was also the factor of the grandparents possibly needing the money for nursing homes and how that could complicate things. I was wondering this though: What if say grandmother makes a loan to a student for his or her undergraduate education. All along she was planning on forgiving the loan, but she suddenly passes away. Now the promissory note becomes a part of her estate. To avoid this happening, could grandmother put a provision in a promissory note such as "this loan is to be forgiven if student completes a bachelor's degree with a GPA of 2.0 or better" or something like that? Or can you not put a forgiveness clause in a loan note? Just wondering...</p>
<p>Could grandma just put a provision in her will that forgives the loan?</p>