If you are the beneficiary of a life insurance policy, and you have student loans to pay off, you can choose to pay your student loans with that money. Or you can choose to spend the life insurance proceeds on other things.
If you are behind on your loans and there is a judgment against you, the lender could come after your life insurance money. If there is no judgement, they cannot take your life insurance money. There are legalities and exceptions to everything, and you should contact a lawyer if you have received life insurance money while having student loans for which you are behind in payment.
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If you are behind on your loans and there is a judgment against you, the lender could come after your life insurance money. If there is no judgement, they cannot take your life insurance money. There are legalities and exceptions to everything, and you should contact a lawyer if you have received life insurance money while having student loans for which you are behind in payment.