What to do when a Aidvantage account holder dies
Contact Aidvantage — 5-step process, 2 required documents, and varies. aidvantage reviews the proof of death, refunds any payments received after the confirmed date of death, and then discharges the remaining balance.
Verified Jul 2026
What happens to Aidvantage student loans after the account holder dies depends on how each account was titled. Beneficiary-designated and trust-owned accounts transfer directly. Accounts in the deceased's name alone go through the estate, and the executor or administrator works with Aidvantage's Aidvantage Borrower Services (Death Discharge) (1-800-722-1300) to claim the funds.
The claim process begins with a phone call to 1-800-722-1300. Have the account holder's full name, account numbers, and a certified death certificate available when making initial contact.
Death claim process
Follow these steps to file a death claim with Aidvantage:
Filing a claim
1
Confirm the loan is a federal student loan serviced by Aidvantage for the U.S. Department of Education. A federal Direct Loan is discharged on the borrower's death; a Direct PLUS Loan (including Parent PLUS) is discharged on the death of the student on whose behalf it was borrowed.
2
Gather acceptable proof of death. Under federal rules, the servicer accepts:
- An original or certified copy of the death certificate
- A clear photocopy of an original or certified copy of the death certificate
- An accurate and complete original or certified copy of the death certificate submitted electronically
3
Contact Aidvantage at 800-722-1300 to report the death and confirm where and how to send the proof of death. Documents can also be uploaded through the borrower's StudentAid.gov account when login access is available.
4
Aidvantage confirms the date of death and discharges the remaining balance. Any payments received after the confirmed date of death are refunded before the balance is discharged.
5
No further payments are due and the estate is not billed for the discharged balance.
Required Documents
- Proof of death — an original death certificate, a certified copy, or a clear photocopy of an original or certified copy
- The borrower's name and account number or Social Security number so the document is matched to the correct loan
What to know at this institution
Federal student loans are discharged on the borrower's death under 34 CFR 685.212(a); a Direct PLUS Loan (including Parent PLUS) is discharged on the death of the student on whose behalf it was borrowed as well as on the death of the borrower. There is no beneficiary designation on a federal student loan and no separate death-claim form for the family to complete — the estate submits acceptable proof of death. Aidvantage's borrower line is 800-722-1300 (TDD/TTY 711); the family reports the death there to confirm the current submission channel, or uploads proof of death through the borrower's StudentAid.gov account. Payments received after the confirmed date of death are refunded before the remaining balance is discharged. A discharge due to death is not treated as federal taxable income for discharges on or after January 1, 2018; the discharged amount may be treated as income for state tax purposes, and any Form 1099-C received should not be included on a federal return. State tax treatment is determined by the state tax authority.
Prepare your letter of instruction to Aidvantage
Aidvantage accepts a claimant-drafted letter of instruction. We draft it for you — addressed to Aidvantage's verified claims department, with the documents it requires enclosed.
Build your letter of instructionProcessing timelines at Aidvantage: Varies. Aidvantage reviews the proof of death, refunds any payments received after the confirmed date of death, and then discharges the remaining balance. Incomplete documentation is the most common cause of delays—submitting all required documents with the initial claim helps avoid additional processing time.
To process a claim, Aidvantage needs Proof of death — an original death certificate, a certified copy, or a clear photocopy of an original or certified copy and The borrower's name and account number or Social Security number so the document is matched to the correct loan. Death certificates and court documents must be certified copies—photocopies are not accepted.
Frequently asked questions
The loan is discharged. Under federal rule 34 CFR 685.212(a), a federal Direct Loan is discharged on the borrower's death once Aidvantage receives acceptable proof of death. After discharge there are no further payments and the estate is not billed for the remaining balance.
Both. A Direct PLUS Loan, including a Parent PLUS Loan, is discharged on the death of the parent borrower and also on the death of the student on whose behalf it was borrowed. Proof of death for either person supports the discharge.
An original or certified copy of the death certificate, or a clear photocopy of an original or certified copy. Include the borrower's name and account number or Social Security number so the document is matched to the correct loan.
Call Aidvantage at 800-722-1300 (TDD/TTY 711) to report the death and confirm where to send the proof of death. If you have login access, the document can also be uploaded through the borrower's StudentAid.gov account.
Aidvantage became the official servicer for the federal (Department of Education-owned) student loans that Navient previously serviced, and borrowers keep the same online login. The death-discharge process for those federally held loans runs through Aidvantage. Private student loans are a separate matter handled by the private lender or its current servicer.
Payments received after the confirmed date of death are refunded before the remaining loan balance is discharged.
No. A federal student loan is a debt owed to the U.S. Department of Education and has no payable-on-death or beneficiary designation. When the borrower dies, the loan is discharged on acceptable proof of death rather than transferred to anyone.
For discharges due to death on or after January 1, 2018, the discharged amount is not treated as income by the Internal Revenue Service for federal tax purposes. The discharged amount may be treated as income for state tax purposes, so the state tax authority determines state treatment. If a Form 1099-C is received, it should not be included on a federal return.
Once Aidvantage confirms the date of death and processes the discharge, the remaining balance is discharged, no further payments are due, and the estate is not billed. Any payments received after the confirmed date of death are refunded.
Aidvantage's Aidvantage Borrower Services (Death Discharge) can be reached by phone at 1-800-722-1300 for questions throughout the claims process.
When the deceased had multiple Aidvantage student loans, some may need separate claims while others can be handled together. The Aidvantage Borrower Services (Death Discharge) can clarify what's needed for each account type.
Sources
Data sourced from Aidvantage primary sources (10 pages reviewed). How we research.
Verified Jul 2026
Estate planning articles
Learn how to protect your Aidvantage accounts and other assets with trusts, beneficiary designations, and estate planning documents.
