Parent PLUS Loan Forgiveness After Death

If your parent took out federal Parent PLUS loans to help pay for your education, those loans are completely cancelled when the parent borrower dies. The same applies to any federal student loan in your parent's name. You don't owe a cent of it, and the process is more straightforward than most people expect.

Federal Student Loan Death Discharge

All federal student loans — including Direct PLUS Loans, Direct Subsidized and Unsubsidized Loans, Perkins Loans, and FFEL Program loans — are eligible for total discharge upon the borrower's death.

For Parent PLUS loans specifically, discharge is triggered by the death of the parent who took out the loan. It doesn't matter how much is owed, how long the loan has been in repayment, or whether payments were current.

The discharged amount may be excluded from federal taxable income. For death-related discharges after 2025, IRS guidance says the exclusion may apply if the taxpayer has a Social Security number valid for employment that was issued before the return due date. State tax treatment may differ, so don't assume every discharge is tax-free or that no tax form will be issued.

How to File the Discharge

Step 1: Notify the loan servicer of the death. Call the servicer listed on studentaid.gov and ask it to start the death-discharge process. For Direct Loans, federal rules provide administrative forbearance after the Department receives reliable information about the death and until it receives death documentation. For FFEL loans, the lender must suspend collection for up to 60 days and may extend the suspension by up to 60 more days if it needs more time to obtain documentation. Ask the servicer to confirm when the account is in forbearance.

Step 2: Obtain proof of death. Federal Student Aid accepts an original or certified death certificate, an accurate and complete photocopy of one (including a scanned or faxed copy), or verification through an approved government database. If you haven't ordered copies yet, request at least 10 to 20 certified death certificates — multiple institutions may need them.

Step 3: Submit the discharge request. A family member must contact the loan servicer; follow its instructions for sending the proof of death. The servicer can tell you whether it needs any additional information.

Step 4: Confirm the account status while the request is processed. Federal regulations set no standard deadline for completing a death discharge. Ask the servicer whether payments are paused and when it expects to complete the discharge. Once approved, the remaining balance is discharged.

What Happens to Payments Already Made

If automatic payments were deducted after the date of death, those payments should be refunded. Contact the servicer explicitly about this — refunds aren't always issued automatically.

If the estate already made payments on the loan after the parent's death, request a refund of those payments as well. The discharge applies retroactively to the date of death.

Private Student Loans Are Different

Private student loans (from Sallie Mae, Discover, Earnest, SoFi, or other private lenders) don't have the same automatic discharge guarantee. Each lender sets its own policy.

Some private lenders will discharge the loan upon the borrower's death. Others will not, and the debt becomes an obligation of the estate. If your parent co-signed a private loan with you, or if you co-signed your parent's private loan, the surviving co-signer may remain fully liable.

Check the original promissory note for a death discharge clause. If none exists, the lender's customer service department can confirm their current policy. If the private loan is in the parent's name alone and the estate doesn't have enough assets to pay it, unsecured creditors (which includes private student loans) are among the lowest priority in estate debt settlement.

Your Own Federal Loans

If you have your own federal student loans (not Parent PLUS) and your parent dies, those loans are not discharged. The death discharge only applies to loans in the deceased borrower's name.

However, you may qualify for hardship-related options on your own loans, including income-driven repayment recalculation, temporary forbearance, or deferment if the death causes significant financial hardship. Contact your own loan servicer to discuss options.

Don't Let Collectors Pressure You

Debt collectors sometimes contact the student (you) and imply that you're responsible for a deceased parent's federal student loans. You're not. Federal Parent PLUS loans are the parent's legal obligation, not the student's, and they're discharged upon the parent's death regardless.

If a collector persists, respond: "This is a federal student loan eligible for death discharge. All communications regarding this account should be directed to the loan servicer." Then document the call details in case you need to file a complaint with the Consumer Financial Protection Bureau.

The Young Adult's Guide to Losing a Parent includes a complete debt resolution checklist covering student loans, medical bills, credit cards, and other common debts — with scripts for contacting each type of creditor.