1. Student loans can be deferred, forgiven or discharged in bankruptcy under very narrow circumstances, among them, proof that there is no way the debtor can ever repay the loan in the future.
2. If you do make money and pay tuition, then your parents can give you up to $14k a year without paying a gift tax, though they have the right to pay tuition for you, regardless, but they may not be allowed to deduct it from their taxes, or maybe they could if you are still considered a dependent.
I am not sure if they would pay more taxes or fees. That is something that a tax preparer and tax lawyer could answer depending on their financial circumstances which is beyond this forum.
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If a pre-existing condition deteriorated after the loan guaranty date, the loan may be discharged under a disability discharge.
If you make enough money after school, your parents can pay off the balance that is due as of the date of payoff, including accrued fees and interest.
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