Federal student loans are discharged upon the death of the borrower. This administrative discharge includes Parent PLUS loans where the student on whose behalf the loan was taken dies.
If the parent-borrower of a Parent PLUS loan dies, the Parent PLUS loan is discharged.
In the case of joint consolidation loans (where spouses consolidate their qualifying federal student loans together under one consolidation loan), a partial discharge is allowed for the loans attributable to the deceased spouse.
What proof of death is needed to discharge a loan?
To administer the death-based discharge, a family member or other representative must provide the loan servicer with acceptable documentation of the borrower’s or parent’s death. Acceptable documentation includes an original death certificate, a certified copy of the death certificate, or an accurate and complete photocopy of one of those documents.