CHINA TOPIX

12/23/2024 12:59:18 am

Make CT Your Homepage

Couple Struggling to Pay Dead Daughter's $200,000 Student Debt

The Masons

(Photo : Family Photo) Steve and Darnelle Mason with their three grandchildren. The children's mother, Lisa, died in 2007 with US$200,000 in student loans that the couple is now forced to pay.

A Redlands, California couple has decided to speak out about being forced to repay their deceased daughter's student loans, spending more than US$2,000 a month and sacrificing their own credit standing, to be able to pay back the debt that had ballooned to US$200,000.

Steve and Darnelle Mason lost their 27-year-old daughter Lisa in 2007 to a liver ailment. Since then, they have been struggling to raise her three children, and paying Lisa's debt that was originally US$100,000. She took out the loan to pay for nursing school, with her parents as co-borrowers. The loan had doubled because of late payment charges, and a hefty 12% interest rate.

Like Us on Facebook

The Masons earn modest salaries at a local church where Steve is a pastor and Darnelle is director of ministries.

Speaking to CNN, Steve Mason said it's just "impossible on a pastor's salary raising three kids to pay $2,000 a month on loans."

Darnelle said they have not been able to properly mourn Lisa's passing, and had immediately focused on caring for their grandchildren - and paying the crushing debt.

Lisa was making payments on the debt when she died. Immediately after her death, the private lenders contacted Steve and Darnelle Mason and told them that they must start making payments.

Mason said some of the lenders have given them breaks after they told their story, lowering interest rates, and one even forgiving the loan. But the debt remains to be "financially devastating."

The couple believes private student loans should be regulated the same way as federal student loans are, and should even be forgiven if the borrower dies.

Steve Mason, who is almost 60 years old, said he and Darnelle have used almost all of their retirement savings.

He says any extra money "goes to the kids, as it should, and then whatever we can pay on the loans, we do."

"At my stage of life, I should have a very different lifestyle than I do," Mason said.

Student loans are the only debt not forgiven by a bankruptcy declaration, but the Masons have started a Change.org petition to allow such loans to be discharged in bankruptcy cases.

Real Time Analytics