Should Banks Forgive Loans of Deceased Students?

When I was in college, students were told that, if we died, the banks would just absorb any money they'd lost on our educational loans, because common decency forbids people to harass grieving parents. According to a petitioner known as Angela Smith, this is no longer the case:

http://www.change.org/petitions/first-marblehead-corporation-forgive-the-student-loans-of-my-deceased-son?utm_source=action_alert&utm_medium=email&utm_campaign=17020&alert_id=mRDDFMaqMQ_RaQEmxgrBZ

Ms. Smith reports that the bank is continuing to harass her about her late son's loans. Where has the common decency gone? Take it out of your own salaries, you greedhead bankers. Nobody in this world will ever see any return on the money you lent this young man's school. Deal with it.