A young man took out a school loan for college. Before he could pay it off, he died. Evidently his mother co-signed the loan. The company now wants the mother to pay the loan. Do you think she is liable - Should the company forgive the loan? US Senator Schumer wants to pass laws that would require a company to forgive the loan in the event of death. Here is my take - If this would become law - than the company will not put a loan in the name of the student - even if the parent cosigns Thus they would require the parents to be the principals of the loan. Thoughts?