Their Dad Took Out $90K In Student Loans For Them In Secret. After He Died, They're Asking Whether To Feel Grateful Or Betrayed. Here's Why

When their father died in late 2023, they thought they were just wrapping up final paperwork and grieving. Then their mom handed them a final notice in the mail about a student loan they’d never even heard of. He Took Out Loans They Never Knew About The son, who graduated from college in 2018, had been paying off $30,000 in federal student loans under their own name. But it turns out their dad had secretly taken out an additional $65,000 – now ballooned to over $90,000 with interest. The issue is, their name wasn't on any of it. Don't Miss: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro Have $100k+ to invest? Charlie Munger says that's the toughest milestone — don't stall now. Get matched with a fiduciary advisor and keep building “I thought my dad had paid for it outright,” they wrote on Reddit’s r/personalfinance recently. “If I had known about them, I would've been paying them off over the last 7 years and made a lot of different decisions.” The loans were likely federal Parent PLUS loans, a type of student aid that parents can take out on behalf of their children. The father had taken full financial responsibility and kept it quiet. Did He Leave Them a Gift Or A Burden? While the discovery left them feeling overwhelmed and confused, the Reddit community quickly weighed in and overwhelmingly saw the dad's move as an act of love. “What a nice parting gift from his dad–clearly dad couldn't afford it but didn't want to saddle him with it either,” one person wrote. Another said, “Your dad didn't tell you because he wanted to protect you from having to deal with it. That's a good dad.” Trending: Buffett's Secret to Wealth? Private Real Estate—Get Institutional Access Yourself Others shared similar experiences. “When my father died he was paying some college loans from my time in college. When my mom called about them, she was told they were forgiven. All she had to do was send them a death certificate,” one commenter said. What Happens To The Loan Now? Under federal law, Parent PLUS loans are discharged when the borrower dies. That means the son isn't responsible for repayment in this particular case, and in most cases, neither is the surviving spouse, unless specific state laws apply. Still, many urged caution. If the loan wasn't a federal loan, or if the father had any private loans instead, collectors could try to go after his estate or even call the surviving family. See Also: Bezos' Favorite Real Estate Platform Launches A Way To Ride The Ongoing Private Credit Boom “Do not under any circumstances tell the loan company it was for your college,” one person warned. “Send them the death certificate and don't pay it.” Another chimed in: “They will try to convince you it is your responsibility.” A Final Act Of Sacrifice In an update to the thread, the original poster started to see things differently. “My dad always did everything he could to help and protect us and some of these comments have made me think that he may have been smart and really known what he was doing here,” they said. Read Next: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform Image: Shutterstock