Kim: Yes that is how it works. When I took out parental loans for my daughter’s college education, I did verify that the loans would be ‘forgiven’ if I passed away. That made my daughter’s day when I signed the loans for her. Since I’m still here, she is still paying on those loans and I’m not going anywhere soon, HA!
But in your case, what a wonderful feeling for you to know that your dad was right and you have what I’m sure was a huge burden lifted off your shoulders! So, even though I’m certain you’d rather still have your Dad with you, this is just one more way that he took care of his little girl(s)!
HUGS,
Margaret