The main issue here isn't that she may or may not have defaulted on it. The issue is, when. With average interest rates of 5-7% on most of these (we will say avg 6%) on a balance of $229,000 you will be paying average yearly interest of $13740. If you don't mind me asking, does you mom have a super high paid profession? like Doctor/Dentist/Surgeon or Lawyer? Even if she was making 40-50K a year it would take her longer than she will be alive to pay it off. The minimum amount due each month for this loan (2%) is Aprx. $4580 a month. Of which $1145 goes to interest and $3435 to the principal amount. By this calculation it will take her 66.66666666.. year to pay this off at this rate. Unless she starts making payments of more than 15K a month it would still take her 15+ years to have this cleared. When she passes away you will be stuck with having to pay back all these debts. I honestly feel really bad for you, this is a crummy situation to be in when you are still young. Its going adversely affect you down the road. It will make it damn near impossible for you to get any credit for yourself down the road. Car loans. Home Loans etc. You are going to only end up being able to get high interest loan shark style loans. The places you apply will look at this amount you have owing as a ding against your credit regardless if its been paid on time or not. The balance amount exceeds a level that could be paid off in a realistic amount of time with a decent income. When you "owe" more than 30% of all available credit (cards, loans, etc) irregardless if you pay your bill on time your credit score will drop. I somehow doubt she has a million dollars in credit available. This would be pretty much the only case you wouldn't be fucked over. I truly wish you the best in the future, stay positive and keep your head up.