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Is the child responsible for the Direct Parent PLUS Loan when the loan is under the parent that has passed away?

Specifically by the U.S. DEPARTMENT OF EDUCATION.

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No:

From The Federal Student Aid Office of the US Department of Education:

What happens to my parent's PLUS loan if my parent dies or if I die?

Your parent's PLUS loan will be discharged if your parent dies or if you (the student on whose behalf your parent obtained the loan) die.

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    fascinating that the student's death (not just the parent's death) causes the loan to be discharged.
    – De Novo
    Commented Feb 27, 2019 at 6:54
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Also note that when it says a loan will be discharged, the IRS considers that a monetary windfall to be taxed. So you would likely still owe money to the IRS for the year that the loan is discharged. Talk to a CPA or tax attorney if this will place an undue burden on your financial situation.

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    This is a nice answer, and would be even better if you could provide a source/link.
    – TTT
    Commented Feb 28, 2019 at 1:58
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    "you would likely still owe money to the IRS": Who is "you" here? I'd assume it's the estate of the deceased parent that owes taxes, but that the child doesn't owe anything directly (though the taxes may reduce their inheritance, if any). Commented Feb 28, 2019 at 18:26

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