Mourning Parents Burdened by Deceased Daughter’s Student Loans

by San Antonio Attorney

The story of Mason’s situation encouraged many readers to help after CNNMoney ran their story.

To date, they have received around $10,000 in donations through the Masons’ GoFundMe website.

During the Senate Banking Committee hearing, Senator Elizabeth Warren talked about the situation of the family.

Steve Mason, a pastor, was grateful for all the help they received. His target is to raise $200,000, to pay for his daughter’s private student loans. According to him, he really wanted to help his daughter Lisa to earn her degree in nursing so he co-signed his daughter’s loans. He never imagined that Lisa would die before she pays off her loans.

Lisa was 27 when she passed away caused by liver failure. All of her bill statements on student loans were redirected to the Mason’s. Mason could hardly manage to care for his daughter’s three kids and pay the loans. Now, due to interest and delinquent penalties, the original $100,000 loans have become $200,000.

In situations like this, federal loans can be forgiven. However, it is the private lenders’ discretion whether they would offer remedy to a borrower.

After CNNMoney contacted Navient Corp., the lender which he owes four loans, they reached out to Mason and reduced the interest rate to 0% on his three loans. The total amount payable was also lowered to $27,000 from almost $35,000.

Better still, Mason said a debt collection company forgave a $15,000 of loan balance after hearing the CNNMoney story.

Mason had thought about seeking bankruptcy relief, but it is hard — usually impossible — to discharge a private student loan in bankruptcy. His attorney said he had such a small chance of getting relief that the costs of filing would only result in additional debt.

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