Senator Chuck Schumer announced Monday that, at his public urging, two private loan companies have agreed to forgive the student loan debt of the late Andrew Prior.
Prior was a graduate of Bishop Grimes in Syracuse and had just finished his education at Northeastern University when he was killed and killed by a hit and run drunk driver in November 2010, at the age of 23.
After Priorâ??s death, while some of his student loan providers forgave his debt, two private student loan companies did not. American Education Services (AES) in Pennsylvania and Education Investment Finance Corporation (EIFC) were threatening to take away the Prior's home and car if they failed to pay an outstanding student loan for their deceased son.
It's common practice for federal student loans to be forgiven or discharged when the loan holder dies; however, it is not required of private loan holders.
Senator Schumer called on the two loan providers to forgive the debt at a press conference with the family last Wednesday.
â??This is a just and appropriate result that should have happened right away,â?? Schumer said in a media release Monday. â??And now that it has, I hope it will help provide some measure of relief to the family.â??