Federal Student Aid (FSA)
Death notification, 3 survivor benefits, and required documents
Federal Student Aid Information Center
Loan Servicer (Death Discharge)
Federal Student Aid Information Center
Federal Student Aid, part of the U.S. Department of Education, manages federal student loan programs. When a federal student loan borrower dies, the remaining loan balance is discharged in full. Parent PLUS loans are also discharged if either the parent borrower or the student on whose behalf the loan was taken dies. The discharged amount is excluded from federal taxable income under IRC 108(f)(5), though it may be taxable at the state level.
Death notification
When a federal student loan borrower dies, a family member or estate representative should contact the loan servicer to report the death. For Direct Loans and FFEL Loans, contact the assigned loan servicer. For Perkins Loans, contact the school that made the loan. The servicer will suspend all collection activity upon receiving notice of death while documentation is gathered.
Deadline: As soon as possible; collection activity is suspended upon notification
Survivor benefits
The FSA offers 3 benefits for surviving family members.
Federal Student Loan Death Discharge
The full remaining balance of a federal student loan (principal plus accrued interest) is discharged when the borrower dies. This applies to Direct Loans, FFEL Loans, and Perkins Loans. Any payments received after the date of death are returned to the estate. The discharged amount is excluded from federal taxable income under IRC 108(f)(5), though it may be considered income for state tax purposes.
Amount: Full remaining loan balance discharged
Parent PLUS Loan Discharge (Student Death)
When the student on whose behalf a Parent PLUS Loan was taken dies, the parent borrower's loan obligation is discharged in full. For consolidated loans that repaid a PLUS Loan, only the portion attributable to the PLUS Loan is discharged.
Amount: Full remaining PLUS Loan balance discharged (or PLUS portion of consolidated loan)
Parent PLUS Loan Discharge (Parent Death)
When the parent borrower of a PLUS Loan dies, the loan obligation is discharged. The student is not responsible for the remaining balance. For FFEL PLUS Loans where two parents co-borrowed, the surviving parent remains obligated unless they independently qualify for discharge.
Amount: Full remaining loan balance discharged
When someone dies
Notifying the FSA after a death
5-step process, 5 required documents, and 3 survivor benefits.
View details →Federal Student Aid Information Center
Loan Servicer (Death Discharge)
Federal Student Aid Information Center