Journalism in the Public Interest

For Grieving Father Struggling With Dead Son’s Student Debt, Resolution Comes Four Years Late

A California gardener lost his son but was saddled with a crushing debt — and it was difficult even to learn who owned that debt. Four years later, he’s finally reached a legal resolution.


California gardener Francisco Reynoso's son died in a car accident in 2008, burying the father in student debt. Now, four years later, Reynoso has finally reached a legal resolution. (J. Emilio Flores for ProPublica)

It's been four long years for Francisco Reynoso. The California gardener whose son died in a car accident in 2008 was left buried in grief — and in student debt. At last, the bereaved father is getting some resolution.

As ProPublica reported in June, Reynoso was saddled with six figures in student loans that he had cosigned for his son, Freddy Reynoso, to attend college. According to his 2011 tax returns, the elder Reynoso made just $21,000. Debt collectors harassed him. His son's federal student loan was forgiven upon his death, but because the bulk of the loans were private, Reynoso was left at the mercy of unfamiliar financial firms, Wall Street investors, and even the central bank of a foreign country.

ProPublica traced the complex loan trail of Freddy Reynoso's student loans, which broke down into two main parts. For the first, Reynoso had borrowed from a bank with a household name — Bank of America. That debt changed hands and was ultimately sold to investors through a company neither he nor his father had ever heard of: First Marblehead, once one of the biggest securitizers of private student loans.

Through the bankruptcy process, that portion of Reynoso's debt has now been discharged. Court filings show that First Marblehead's National Collegiate Trust — its name for its student loan securities — decided not to dispute the discharge attempt.

But the other set of loans — the larger portion of Reynoso's debt — took an even stranger path. Originated by a company later accused of paying schools to steer students toward its loans products, his loans passed through Swiss bank UBS and landed in a portfolio of assets that were acquired by the Swiss central bank to stabilize UBS during the financial crisis.

That fund, known as the StabFund, has reached a settlement agreement with Reynoso's attorney. It's not known whether the settlement, which binds all parties to a confidentiality agreement, will still require Reynoso to pay on his debts.

Andrew Bao, an attorney representing the StabFund, declined comment and promptly hung up on a ProPublica reporter. Erik Clark, Reynoso's attorney, also declined to discuss the case because of the confidentiality agreement.

Speaking generally about the challenges of cases involving opaque private student loans that have been sold and resold, Clark said: "From an attorney's perspective, when you try to settle or negotiate, the real problem is figuring out who you're supposed to be talking to. If someone is calling the client and harassing them, you're not sure that's who you're supposed to deal with." That's partly because the holder of the loan often contracts with third-party servicers or debt collectors that don't have authority over the debt. And, Clark says, sometimes such companies won't divulge who holds the debt.

The current legal standard for discharging a student loan through bankruptcy is "unreasonably high as interpreted," he said, rendering most student loans generally non-dischargeable.

"What I tell people — almost everyone who comes to me — is this is going to require a political solution," said Clark. "People in this situation should be getting politically active and talking about this issue to congressmen. Someone has to be ringing the fire bell."

As for Reynoso — the man who has now suffered for four long years — his financial future remains hazy. He's aware that one of his debts has been discharged. But even now, he's not sure about what's happened with the rest because the final paperwork remains to be signed. Asked whether he knows if he will end up having to pay in the end, Reynoso replied that he didn't.

Stephen Cheng

Dec. 19, 2012, 3:46 p.m.

This man and his family have suffered enough. Just cancel the debts.

I was terribly, horribly afraid from the email headline that this story was going to be about an American youth who - under the unrelenting pressure of the hounds of America’s debt collection monstrosity - had taken their own life.

It has become a truly evil America when I find myself feeling a sense of relief upon finding that a life was cut short somewhat “naturally” and the foul creatures of the debt industry are tormenting…survivors.

The problem would never have happened it he had a simple term life insurance policy on his son. For a premium of $100/year all the schools loans would have been paid.

USB.  Surprise!  Surprise!  Surprise!

These kinda of congressionally supported scams will stop once we insist that there is no private gain for public service of our politicians just like it is required if federal employees.  Since it is a crime worse than treason all their assets should be confiscated just like drug dealers!!!!!!!!  You think this is bad look into the cruise ship scams for killing raping and robbing Americans aboard cruise ships and what ever you do don’t take kids aboard Disney cruises.  They are swarming with peso files who will never ever be charges with a crime!!

Ken, you are a pig.  There’s always an insurance agent pimping in the comments section of a death, even when it is a child.  Think you could find a legitimate job?

Papa Maury Clark

Dec. 19, 2012, 5:37 p.m.

“Srudent Loans” that are federally guaranteed are much like mortgage loans that are cancelled as a result of default or foreclosure.

In general, student loan guarantees by co-signers that are also . (federally) guaranteed by SallieMae cannot be forgiven as they are exempt from bankruptcy protection, and collectable forever. The co-signer should also be aware that 75% of all loans end up defaulting to the co-signer.

The similarity to federally guaranteed mortgages in default (and forgiven) as in the following example, could find the borrower liable for INCOME TAXES on the forgiven portion. For example: If a house value has dropped from the purchase price of $350,000 to $200,000, and the debtor owes $300,000, AND the $100,000 differential is forgiven, the debtor could find themselves liable for federal income tax on the forgiven $100,000 portion. There is currently a moratorium on this IRS code provision which disappears if we fall off of the “Fiscal Cliff” at the end of this year.

Arguably, on the other hand, the holder who bought the loan in expectation of the agreed terms being met may no longer expect to receive the promised rate of return. If the loan(s) fail, the expected rate of return fails, and the pension plan, life insurance co., etc., holder may not be able to meet promises made for annuities or pension plan payouts.

So the pathway that is ultimately taken may face issues that are intractable for all parties to the mess.

You should always check with an attorney, but there may not be an acceptably valid case suitable to everyone.

Anyone who even thinks of co-signing anything for anyone needs to really read all, and I do mean all, the fine print.  My best advice is never to co-sign for anyone, even family.

David did a typo.  It is UBS.

Roy Staples

Dec. 19, 2012, 7 p.m.

Why has Wall Street been rescued, while regular Americans have not? Why does this man have to pay for a risk that the loan companies took: the risk that they will reap large profits by loaning this man’s son, a young man, money for school. When the young man becomes an adult, this huge amount of profits would go to the loaning bank.

If the young man dies, then that’s the risk. Sorry loaning company: there are consequences in loaning.

That’s it. No one should owe anything.

Roy that is a reasonable question but anyone who does not know the answer has not been paying attention. 
Another similar question with the same answer.  Why does Warren Buffets secretary who makes $60000 a year pay a higher rate of tax than some hedge fund managers who make hundreds of millions a year?  Why has the productivity of the American worker risen significantly in the last few decades while their wages have actually declined in real terms?  Why do some Americans have several lavish homes all around the world while many Americans have no housing at all? 
Tragically there are many questions like this that could be asked about America and the answer is the same.  America is a vastly inequitable society and is designed to be that way!

Re:  the answer is the same.  America is a vastly inequitable society and is designed to be that way!

Nah.  A symbiotic relationship has become parasitical.  Any parasitical infestation can be treated - and must be, lest the host be irreparably damaged or killed.

Is survival 101.

ehotmail.comddie thiel

Dec. 20, 2012, 2:22 a.m.

Banks f@#k people in any and all ways possible.These people have no morals or code,but are 100% souless freaks.Their several steps below child molesters and thats not being fair to the molesters.

“Ken, you are a pig.  There’s always an insurance agent pimping in the comments section of a death, even when it is a child.  Think you could find a legitimate job?”  GIRLCOUSIN, your comment totally escapes me.  Ken has offered a perfectly acceptable solution/alternative that any/every individual that choses to cosign a loan could/should available their self of.  Many times-though I don’t recommend this approach-the cost of such insurance can be factored into the repayment.  Of course, the other side of the coin one could reasonably ask is why was credit life insurance not required by the bank as a condition of granting the loan.  If Mr. Reynosa had availed himself of this option and taken out term life on his son, he wouldn’t have been in the financial malaise that was interjected into his life. 

Of course, “hindsight is 20/20, foresight is 20/2000”.  Unfortunately, to many people maintain the attitude that such adversities “will effect the other guy-not me”.  Then, when the adverse realities of existence appears, for some unknown reason they anticipate/expect life will provide a mulligan.  I call such an attitude/expectations the “not me” syndrome.  It kinda of like the sexually promiscuous high school teenagers that feel pregnancy happens to other kids, not to them.  Then, when an 18-20 year commitment comes knocking at the door, they and their parents, go knocking on the states social service department expecting “bailout”.  Or, the drunk insisting on driving home after an all night binge thinking the cops want catch me or I’m not gonna kill anyone…I’m not that drunk.  Then waking up in jail with a vehicular homicide charge and expecting the legal system to understand and be compassionate because he/she didn’t meant it/hadn’t planned on it. 

What I’m saying is we can/should—assuming one didn’t win the lottery or is independently wealthy- “securityize” our financial existence better.  Insurance is one method of accomplishing such.

I agree with @Louise about never ever co-signing anything for another person if you can avoid it. While my adult-age brother, who had suffered a series of multiple strokes, lay dying in the ICU, the hospital kept trying to get my parents to sign as the responsible parties for his billing. Mind you, as a cancer survivor, he was unable to obtain private insurance due to an “existing condition.” Luckily, despite their grieving state, they avoided signing anything and, in the end, we paid each of the medical parties responsible a portion of their ridiculously astronomical charges from his small savings (probably about the same small percentage an insurance co. would fork over). But every time I hear of parents co-signing private student loans or, even worse, taking out mortgages on their homes to pay for education, I am reminded about what a potential financial disaster it can be. In the case of this poor father, I’m sure he’d pay anything to have his son back (as my parents would have done for my brother). That’s what makes it even more heartbreaking. But for those even thinking of doing this for someone, it’s safest for debt to remain under a single person’s name if at all possible to avoid these kind of situations.

The only reason this loan might be forgiven - we don’t know- is because Propublica spent their time and money to investigate this case.  They cannot do this for every case of course.

We need to bring this Propublica story to our elected politicians and they usually are fond of insurance companies and student loans with a cosigner on the loan must sign up to a life insurance policy that will agree to pay off the loan first if the student dies.

Last but not least—all who read here—please send a check to Propublica for Christmas for their positive work in many aspects of our lives—me I live in hydrofracking country NY state and thank you Propublica Abrahm Lustgarten has helped specifically people like us so you are really PRO publica!!

send a Seasons Greetings check by snail mail to :
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Happy Holidays

1 question the article did not specifically address was, whether the son had finished college & thus used all the loan $. Also, that seems high for just a Bachelors, so was he going to a very expensive private school or to med school or something or what? Had he started to repay the debt?

I’m guessing that the Father may be somewhat naive financially & just wanted to help his son succeed.

Of course a better way if children are still young would be to start setting aside $ for college in suitable investments—not a low rate CD that doesn’t keep up w inflation. 529 plans remove some of the risk of ignorance of investing.

& as was stated earlier,in-expensive term life insurance is an inexpensive way to cover responsibilities/obligations to another.

In addition, the way the economy is going now, lower cost 2 yr colleges to start w could help prevent accruing so much debt that a student may have trouble repaying.

@Ken, girlcousin, GREG FOREMAN…(the caps are a matter of copying and pasting):

What we don’t know is if the loan originator offered such insurance to any of the cosigners at the time of loan origination.  Seems like a reasonable thing for an honest originator to do, especially for the event of the death of the primary debtor.

Unless, of course, the loan originator was more interested in the interest payments than they were in the principle…and seeing as how a surviving cosigner got saddled with the debt, the latter situation is…implied. 

As a matter of fact, given that the industry bought the Bankruptcy “Reform” Act of 2005 from a Republican Congress of that year, I’d go so far as to say screwing America’s young people is written into the Congressional Record.

Actually credit insurance is usually more expensive than plain life insurance. There are agents out there to make a buck selling specialized insurance that only covers 1 thing (such as a particular debt) that probably costs more per $1k than inexpensive term life insurance—that is not the same as loan insurance.

& it is very possible that the Dad was not aware of life insurance. Awareness tends to be low in the Latino community. I’ve heard several say that they associate someone dying w car washes just to bury the person—of course that doesn’t take care of survivors.

& that’s another thing. It was probably part of the plan, even if not expressed that the young man w his advanced degree (which I assume he must have been going for w that size of student loans) would become successful & help support his parents or at least contribute to their well being as they aged.  Life insurance could have taken care of that as well, although we often insure parents to provide for the kids, but it could work the other way as well.

Assuming the kid was healthy he could have been covered for say $250k for a 20 yr term (which would give him a basic coverage after school as he got started in his career & paid off his debt) for less than $25/mo. I imagine the kid would have wanted to help out his parents ingratitude for what they had done. Family feeling seems to run strong in latino families so I don’t imagine in his wildest dreams that he expected to leave this in his dad’s lap.

Oh & they should investigate if some of the student loan companies involved were making predatory loans or were there reasonable student loans?

The few who own the Republicans have really put a hurting on America…first they used voodoo economics to incentivize themselves into stealing the rest of America’s wealth, and then they gave themselves deregulation and inequitable free trade as the weapons with which to make those thefts possible…

And then as they got rid of jobs with inequitable free trade they created this fiction that if only America’s kids get lots and lots of education, those poor kids could get a job….but oh, by the way - those kids would need lots of loans…which the banks they - coincidentally - own will be happy to provide at usurious interest rates…

But yes, they’ll be happy to provide those loans, since the few had their Republicans rewrite the bankruptcy laws so that America’s kids can never, ever escape from those loans as the industry isn’t capitalistic anymore since there is no risk in it for them; it’s not even socialistic - it’s pure totalitarianism with the state as enforcer.

And oh, by the way:  Those jobs don’t actually exist…

So America’s kids are increasingly worse off than the indentured servants that were part and parcel of why America rebelled against the last set of aristocratic totalitarians that attempted to crush liberty under their boot heels with the chains of economic servitude.

What puzzles me is the pseudo-American right - the Republicans - are always claiming that that they represent the “real” America.  How can that be, when all they do is designed to crush the American people - from our aged all the way down through our kids - America’s very future?

lollll…I’m going to start watching the moon at night…I’ll know the Republicans are telling the truth about representing the “real” America when I start seeing squadrons of pigs flying over it.

ibsteve2u, sounds like you have been reading too much mainstream media that you think everything is the fault of GOP. You have a mixture of truth, mixed w a huge amount of blame in the wrong place.

People have been telling kids to get a good education, that its the key to your future & all that. I heard that when I was in HS & I qualified for Medicare last year, so that has been going on for a long time. & Obama has been pushing people to go to college & all. So I don’t see how you can attribute that to any 1 party. & yeah, they left out a few things, namely that a college degree does not automatically get you a job & not having 1 does not keep you from getting a good job.

I think in general going to college is good, but not getting buried in debt to do so. 2 yr colleges are cheaper & a way to start. Also parents who plan ahead can often save & invest to pay for their kids to go to college. My parents paid for my brother & I & then set aside & invested $ for their grandkids to go to college as well. My Dad was a carpenter, my Mom a public school teacher. They didn’t spend all their $, but instead lived below their means & built some wealth.

Also, don’t jump to conclusions that all those rich bankers that messed things up were GOP. Some of the Citi leadership I think were Dems, & maybe others as well.

btw, several GOP senators proposed more regulations on Freddie & Fannie, but Frank, Obama & others wouldn’t even consider it. They were so het up on everybody being a homeowner that the removed reasonable roadblocks to home ownership—like making sure that people could afford their mortgage—not just the 1st yr or 2. That sure didn’t do any favors to low income people to get them into their 1st home & then lose it because they couldn’t afford it.

& after things came crashing down, Obama was still pushing to loosen credit to stimulate the economy. Talk about being a huckster for people getting in debt & not making sure it can be afforded. Of course he’s doing the same w the country’s finances. Who cares about debt when you can keep borrowing? Not Obama or the Dems. & its especially the younger generation who voted for him who are going to be bearing the burden of the huge national debt so they will be paying more in taxes & getting less benefits, only they don’t grasp that yet.

Most Presidents would not have been re-elected w the dismal unemployment figures—which don’t even reflect total unemployment since they don’t include those who have exhausted their benefits or who have given up looking or those who are way under-employed.

But mainstream media have covered up for him & pushed lies!

A few big things that this article leaves out. What was he studying & did it include grad school or what to rack up that amount of debt?

Since 1 of the lenders had a history of getting schools to steer students to them, that sounds like he might have been duped into some of those for-profit trade schools are supposed to train for a career but too often the promises are overblown & the training may not really prepare the students for what it is supposed to. So some of them have very high student loan default rates.

So was he going to those kind of schools or what type of school did he go to, studying what? Did he go to a 4 yr school & complete it, grad school? How did he amass so much debt?

Also, my guess is that the Dad may not be very sophisticated financially & may not be well educated or understand American financial institutions. He may not even have understood what co-signing meant.

I was working in a segment of the latino community w a lot of gardeners & laundry women. Many of whom did not speak English. They were generally hard working people, not making a lot & some hadn’t even learned cursive writing. They weren’t stupid, just not well educated. 1 of them I was talking to told me that he had co-signed for a friend’s mortgage & ended up w the mortgage in his name. So then when he wanted to get his own, he couldn’t qualify. So I think his mortgage was in his son’s name or something like that.

When I was working w them, I realized that some of them were more vulnerable than most w not speaking English & not being well educated so I felt a stronger responsibility to respect that & educate & explain & help them to understand how money works.

But there seem to be some who prey on foreign born people who may not understand US ways & especially financial matters to take advantage of them & sell them things not in their best interests.

So were they sold loans rather than other types of possible financial aid? & was the son even getting his $ worth in education? Or were they being way over charged for what education he was getting? Those are all important questions that relate to this. & if they were being ripped off, then those doing the ripping should be prosecuted—that is, if it is illegal. Unfortunately, there are financial & other products & services that are legal but rip-offs.

K, the college that ProPublica would not identify is BERKLEE COLLEGE OF MUSIC.

ProPublica, do you lend music majors $225,000?

Why doesn’t ProPublica investigate Berklee College of Music?

Answer: because that wouldn’t fit ProPublica’s biases (D).

Hello “R,”

As the writer on this piece, I’m baffled by your comment. I have certainly reported that Mr. Reynoso cosigned on the loans in order for his son to attend Berklee—we link in this piece to our earlier report that spells out that fact in the first three paragraphs.

You are more than welcome to read those paragraphs, and to comment again once you have.


Ms. Wang—

So .. when are you and ProPub going to investigate why BERKLEE COLLEGE OF MUSIC of Boston, Mass., enabled the poor, pitiful persons in this story to borrow $225,000?

Isn’t that insane? Enabling such poor persons to borrow such a large sum of money? For music education?

Madam, what are you and ProPub afraid of?

Afraid of upsetting your donors (D)?

Shame on you and ProPub, madam.

Shame on being afraid to tell truth to power. So much for “without fear or favor.”

There’s no reason to believe any ProPub publishes. They are a tool of the (D).

Rhette Michaels

Dec. 23, 2012, 8:01 a.m.

My aunt co-signed for her grand daughter’s student loan. The grand daughter was making the payments and doing so faithfully, but my aunt passed away.
On the day of the funeral, our family went back to my aunt’s house for the wake. While there, my uncle received the first call from the student loan people telling him HE was responsible for the student loan debt due to his wife’s death.
I’ll never forget the look on his face. He stood there stunned and then, my Mom stepped up and spoke on the phone and told the man to have some decency and wait.
My uncle got a lawyer. It went to court and my aunt’s estate was discharged of the student loan obligation. The girl who was making the payments started receiving harassment and collection calls even though she was making the payments!!! (The payment schedule was verified by my uncle’s attorney. She IS making the payments dutifully.)

The collection agencies are ruthless. The common thought is “There ought to be a law about that”, and there is…Unfortunately, it doesn’t side with the ones who are fulfilling their obligations.

RM, you just made the case for NOT co-signing a loan.

Let’s be blunt—95% of the time, it ends up bad.

Don’t co-sign, unless the collateral is good.

I have to agree with Roy. For some it may be easy to say don’t co-sign, but after the fact it is a mute point. As parents, we always try to help our children. I did just that when my 30 yr old son needed a loan to finish Culinary School. We had high hopes for him. For the last 3 years he has been working and has been responsible. In Oct. he passed away suddenly. Now I am left with the loan. The whole idea of lending is for future benefit. Now my son is dead and I will never receive the"future benefit” of the loan. Don’t be so quick to judge, unless you are in the shoes of a grieving parent. I can’t even get the loan company, PNC Bank, to work with me. My husband and I have one income and are close to retirement. These private lenders should, at the least,work with people, especially when there is an unexpected death of the borrower.

Ann, some facts, the stuff that ProPublica hates—

FACT: the colleges take a % for the loan.

FACT: if OweBama (D) issued an order, that ALL student loans must have credit insurance (cost: 2%)—all this goes away.

Yes, that would drive up the cost of student loans.

Well, OweBama (D) and his Harvard Law pals like to grab money—this is just the same.

New Year, and all that…so hey, R - you still thinking the President should be issuing Executive Orders interfering with how higher education, banking, and the insurance industry across America - as well as all foreign banks, insurance corporations, and higher education institutions doing business in America - conduct their business in America?

That would make him “King”, wouldn’t it?  And that would be required to meet the terms of your if OweBama (D) issued an order...

But it isn’t realistic to think, let alone say, that…after all, the fact that he is a “(D)” precludes his up and acting like a King/(R).

ib, you are as clueless as ProPublica about the real world.

Just ask all the small business people who are now WASTING billions, trying to figure out the load of bull known as OweBama-care (D).

Oh, and they will NOT be hiring anyone. OweBama (D) likes that, he’s a dirty Chicago thug-politico (D) who needs to buy votes from the clueless.

Clueless, as in BERKLEE COLLEGE OF MUSIC (D), enabling at $225,000 loan to a janitor for a “music-performance” degree (D). Which ProPublica refuses to report on.

Sick, ridiculous, and impeachable.

The president should not issue an order, however it would be good if congress would require better disclosure on student loans.

Credit insurance is really not the best way to go. A simple term life insurance policy should be less $ & would also cover other things as well.

This article has made me more aware of this issue, so in the future when talking w young people w large student loans of the type that someone else would be responsible for should they pass, I will bring up this issue & show them how they could have a low cost term life insurance policy. If the person is healthy, they should be able to get about $250k coverage for about $25/mo. That would cover student loans, other credit that others would be responsible for, burial costs, etc—not just the loan. The amount would be adjusted for whatever their obligations are.


The college that enabled a $225,000 “student” loan to a $22,000/year gardener—BERKLEE COLLEGE OF MUSIC—

What was BERKLEE COLLEGE OF MUSIC’S fee for enabling the loan?

Most colleges SKIM 3 percent for “processing.”

Hey, PP—that’s nearly $7,000, in this case. Try to do the math, if you can.

Nice “work.” Just like how Albert Gore, Jr. (D) made $100,000,000 for Al-Jazzera.

lollll…and here I had considered a New Year’s resolution to avoid being provocative.

But, no; in the end, I again decided that drawing the…shall I say “other guys”?...out where the American public can see all of their…nuances…is too…instructive.


The college that enabled a $225,000 “student” loan to a $22,000/year gardener—BERKLEE COLLEGE OF MUSIC—

What was BERKLEE COLLEGE OF MUSIC’S fee for enabling the loan?

Most colleges SKIM 3 percent for “processing.”

Hey, PP—that’s nearly $7,000, in this case. Try to do the math, if you can.

Nice “work.” Just like how Albert Gore, Jr. (D) made $100,000,000 from Al-Jazzera.

Thank you GREG FOREMAN for your comment. I find it amazing how someone could rip into my suggestion of a proactive and logical way that could have avoided the problem. And how so many people want to rip into the author, blame the governement, blame the school, or have our country forgive the loans. Amazing, and sad!

I personally believe that those who advocate that a young person take out term life insurance - thereby making their deaths a solution for the predicament they unintentionally may place a cosigner in when they discover that they cannot find a job because the Republicans and neoliberals sent them to China or India - are not thinking.

Or…perhaps they are, and the profit margin on term life insurance is greater than the profit margin on credit insurance.


“Or…perhaps they are, and the profit margin on term life insurance is greater than the profit margin on credit insurance.”

Obviously, this ignores previous posts, that state the latter is more profitable than the former.

Kind of like how Solyndra was such genius, losing $500,000,000.00 of taxpayer funds.

Getting tired of parasites like ProPublica, expecting taxpayers and others to fix the financial mess left behind by colleges like BERKLEE COLLEGE OF MUSIC and OweBama (D).

When a student borrows more than $50,000—they ought to be required to buy life insurance. So as not to burden others, and letting ProPublica to focus on real problems ($16,400,000,000,000.00 taxpayer public debt, for starters).

ibsteve2u, Your comment shows a misunderstanding of what life insurance is for. It is NOT to make death the solution for anything. It is to provide the financial needs of those left behind because of an unexpected death. So that would be if someone has dependents who would be financially devastated by the death, or if someone else would be left w expenses—as happened in this case—by the death of the insured. Term insurance is pure insurance no fancy expensive extras.

& generally speaking specialized kinds of death insurance such as credit insurance, cancer policies, etc are either more expensive/$1k or very limited in coverage so it makes more sense to just get 1 term life insurance policy to cover all the obligations & needs of those who would suffer financially in addition to the sorrow of losing the person. Can’t fix the latter, but can at least mitigate the financial consequences.

lollll…yes, it was silly of me to expect those whose moral environment is bounded…defined…by dollar signs to grasp the concept of human cost….

What I attempted to convey is the fact that - for some - knowing that life insurance will pay off their debts when they cannot find a job because our economy/labor force has been betrayed by the Republicans and neoliberals will result in death being interpreted as a viable - even a preferable - alternative to the constant screeching debt collectors and the alternative of ruining their families financially.

Thus prioritizing credit insurance over life insurance is more responsible and realistic in today’s inequitable free trade-savaged American economy.  Further, tying the cost of that credit insurance to the lenders’ and educational institutions’ income stream in such a way as to discourage loading American kids with debt when you know damn good and well they’ll never get a job in their prospective field should be a baseline priority.

You can go back to counting your money, now.

This article is part of an ongoing investigation:
College Debt

College Debt

Total outstanding college debt is estimated at $1 trillion dollars – and with costs still soaring, the burden on students and their families shows no signs of abating. We're examining how the complicated system of college debt is putting the squeeze on families.

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