🎓 Discharge
What Happens to Student Loans When You Die? Federal, Parent PLUS and Private
Short answer: Federal student loans are generally discharged when the borrower dies, and the debt does not pass to family members. Parent PLUS loans are discharged if either the parent borrower or the student dies. Private loans depend on the lender and any cosigner, so contact them. A family member usually needs to send a death certificate to the servicer.
Federal student loans
When a federal borrower dies, the remaining balance on Direct, FFEL and Perkins loans is generally cancelled after the servicer receives proof of death. The estate and relatives are not asked to repay a discharged federal loan. Federal discharge due to death is also excluded from federal taxable income under current law. State tax treatment can differ, so ask a tax professional. Learn more at StudentAid.gov.
Parent PLUS loans
A Parent PLUS loan is discharged if the parent borrower dies or if the student for whom it was taken dies. For a consolidation loan that repaid a PLUS loan, only the portion tied to the PLUS loan is discharged. Read more in Parent PLUS repayment options.
Private student loans
There is no general federal rule requiring private lenders to cancel loans at death. Some do, and some pursue the estate or a cosigner. Cosigned loans may remain the cosigner’s responsibility unless the lender releases them. Ask the lender about its policy and read cosigner release requirements. Compare loan types in federal vs private student loans.
What a family member should do
- Find the loans and servicers. See how to find your servicer and loans.
- Contact each servicer, and tell them the borrower has died.
- Send a certified copy of the death certificate (the servicer will say if a scan or photocopy is acceptable).
- Ask the servicer to place the account on hold and to confirm the discharge in writing.
- Keep copies of everything. If anything goes wrong, see how to file a servicer complaint.
Hypothetical example: A parent with Parent PLUS loans loses her child. She sends the child’s death certificate to her servicer and asks for written confirmation that the PLUS loan has been discharged. Another family finds a private loan with a cosigner and calls the lender to ask about its policy.
Other situations
If a borrower is living with a serious disability, see total and permanent disability discharge. For other cancellation routes, see forgiveness eligibility. Be careful of anyone who calls offering to “handle” discharge for a fee. See scam warning signs.
Rules change. This guide was reviewed against official sources when it was published. Federal student-loan programs, deadlines and court-driven changes can shift quickly, so confirm current details at StudentAid.gov before you act.
Frequently asked questions
Official sources and references
Related guides
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