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What Would Happen to My Loan if I Were to Pass Away or Become Disabled? | General Questions

For Student Loan Refinance

In the unfortunate event that the primary borrower passes away or becomes totally and permanently disabled, the Earnest refinance student loan may be fully discharged. 

In the unfortunate event that the cosigner passes away or becomes totally and permanently disabled, they may be removed from the remainder of the loan if they meet specific criteria, following a review. However, the loan will remain the primary borrower's responsibility.


For Private Student Loans

In the unfortunate event that the primary borrower or student becomes totally and permanently disabled, the Earnest student loan may be fully discharged. If the primary borrower passes away, the cosigner may be released from future repayment obligations, and the remaining loan balance forgiven.

In the unfortunate event that the cosigner becomes totally and permanently disabled, they may be removed from the remainder of the loan if they meet specific criteria, following a review. However, the loan will remain the primary borrower's responsibility.  If a cosigner passes away, the primary borrower will be responsible for the remaining outstanding balance of the loan.

How do I Report a Death or Total and Permanent Disability on my Student Loan?

If a primary borrower or cosigner on your student loan passes away, or if you need to report a total and permanent disability, it’s important to notify us as soon as possible.  Please contact us immediately at (888) 601-2801 during our office hours – 6 a.m. to 5 p.m. PT, Monday through Friday, excluding holidays. Our team is here to assist you through the process.

When reporting a death, please be prepared to provide the following required information:

  • Role of the individual in relation to the loan (primary borrower, cosigner, or student)
  • Name of the individual who passed away
  • Date of passing
  • Death certificate

What Happens When a Report is Submitted?

Death

Death notices are typically processed within five business days of receipt of the death certificate (assuming the certificate contains all required information to review the request). 

Total and Permanent Disability

Upon receipt of the completed Total and Permanent Disability Request Form, the loan will be placed into an Administrative Forbearance for no more than 365 days while the application is evaluated. No payments will be due during this time; however, interest will continue to accrue. You will then be notified once the evaluation has been completed.


For Personal Loans

If the borrower of a personal loan passes away, or if you need to report a total and permanent disability, the Client Happiness Team is available to answer your questions and provide guidance. Please contact us at (888) 744-0767, Monday-Friday (excluding holidays) from 6 a.m. – 4 p.m. PT, or click the “Get In Touch” button at the bottom of this article for additional information.

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