If she dies the ten year reduced payments…and the “balance” is forgiven…she will,have to pay taxes in the amount that is forgiven, there are no free rides.
My guess…she will just be in default…if she can’t make $5000 a month in payments.
If she does the cancellation…she will,have huge issues the year she is done and has to pay taxes on the forgiven amount,which likely will far exceed her income. And the IRS isn’t forgiving at all.