If my bank fails, do I still have to pay off student loans?
If my bank fails, do I still have to pay off student loans? What is the general trend with failing banks and loans?
If a bank fails then who ever buys the bank gets the loans. The biggest reason that a bank fails is that it has more outstanding loans not being paid then income coming in to cover the cash going out. Also, especially if they are Federal student loans, you actually owe the government for the money and not the bank and the Feds always get their money.
