What happens to student loans when you die?
Federal student loans are discharged when the borrower dies, once the loan servicer gets proof of death. A Parent PLUS loan is also discharged if the student or the parent dies. Federal law makes these discharges tax-free. Private student loans depend on the contract, though newer private loans must release a cosigner when the student dies.
Last checked . General information, not legal or financial advice. Rules vary by state.
Quick facts
- Federal student loans are discharged when the borrower dies, once the Department of Education has proof of death (34 CFR § 685.212, as of 2026).
- A Parent PLUS loan is discharged if the parent who borrowed or the student dies (34 CFR § 685.212, as of 2026).
- A student loan discharged because of the student's death doesn't count as taxable income (26 U.S.C. § 108(f)(5), as of 2026).
- For private student loans made on or after November 20, 2018, the lender must release a cosigner when the student dies (15 U.S.C. § 1650(g), as of 2026).
Your next step
What happens to federal student loans when the borrower dies?
They are canceled. Under federal rules (34 CFR § 685.212), the Department of Education discharges the loan once it has proof of death. Neither the borrower's estate nor any endorser (someone who signed on to repay if the borrower didn't) has to make further payments.
Proof can be an original or certified death certificate, an accurate photocopy, or a scanned copy sent electronically or by fax. The Department can also confirm the death through an approved federal or state database.
- Find out who services the loan. It is on the borrower's statements or emails.
- Call the servicer and tell them about the death.
- Send a copy of the death certificate the way the servicer asks.
What happens to a Parent PLUS loan if the student or parent dies?
It is discharged in either case. The rules cover the death of the parent who borrowed and the death of the student the loan paid for.
If a Parent PLUS loan was folded into a consolidation loan, the part that came from that PLUS loan is discharged when the student dies.
Is a student loan death discharge taxable?
No, under current federal law. Section 108(f)(5) of the tax code says a student loan discharged because of the student's death doesn't count as income.
A 2025 law rewrote that section for discharges after December 31, 2025. The current text has no end date.
What happens to private student loans when the borrower dies?
It depends on the loan contract and when the loan was made. For private student loans made on or after November 20, 2018, federal law requires the lender to release any cosigner. It has to do this within a reasonable time after it learns the student has died.
The same law stops a lender from declaring the student in default just because a cosigner died.
For older private loans, read the contract and ask the lender. If the estate owes the balance, it is paid from estate money like other debts.
Questions people ask
- Are parents responsible for a dead child's student loans?
- Not for federal loans. Federal loans in the child's name are discharged, and a Parent PLUS loan taken out for that child is discharged too. A parent who cosigned a private loan made on or after November 20, 2018 must be released.
- Does a spouse have to pay student loans after death?
- Not federal ones, because they are discharged. For private loans, a spouse owes the balance only if they cosigned, or in some situations in a community property state.
- Do I need a certified death certificate to discharge federal student loans?
- No. An accurate photocopy, or a scanned copy sent electronically, is enough.
More questions
- Will the family get a tax bill for a discharged student loan?
- No, not under current federal law. A discharge because of the student's death isn't counted as income.