Notify Student Loan Provider

Yes. Federal student loans (Direct Loans, Stafford, Perkins, FFEL) are fully discharged upon the borrower's death. Submit a certified death certificate to the loan servicer. Processing typically takes 30-90 days. Any payments made after the date of death may be refundable. The discharged amount is not considered taxable income (as of the Tax Cuts and Jobs Act, through at least 2025). Contact the servicer listed on studentaid.gov or call the Federal Student Aid Information Center at 1-800-433-3243.

Parent PLUS loans are discharged upon the death of either the parent borrower OR the student on whose behalf the loan was taken. If the parent borrower dies, submit a death certificate to the servicer. If the student dies, the parent can apply for discharge by submitting the student's death certificate. In both cases, the discharge is tax-free through at least 2025. Processing follows the same 30-90 day timeline as other federal loan discharges.

Private student loan policies vary significantly by lender. Some lenders (Sallie Mae, SoFi, and others) voluntarily discharge loans upon the borrower's death, but they are not legally required to. If the loan has a co-signer, the co-signer typically remains responsible for the full balance. Review the loan agreement carefully for death discharge provisions. Contact the lender with a death certificate and ask about their specific policy. If the co-signer cannot pay, negotiating a settlement for less than the full balance is sometimes possible.

For federal loans, you need a certified (not informational) death certificate. The servicer will provide a discharge application form. For private loans, requirements vary but typically include a death certificate, proof of your relationship or executor status, and the loan account number. Keep copies of everything you submit. If loans were being auto-debited from a bank account, contact the bank to stop payments immediately—overpayments after death can take months to refund.