What to do when a ELFI account holder dies

ELFI does not publish a borrower-death discharge policy on its public site. Some private lenders discharge a loan on the primary borrower's death, but ELFI states that whether a private loan is discharged depends on the type of loan and the lender, and it directs borrowers to their promissory note or loan agreement for their exact terms. Do not assume forgiveness — ask ELFI or the assigned servicer to confirm in writing before the estate pays anything.

ELFI originates the loan but assigns servicing to American Education Services (AES) or MOHELA; the servicer manages the account and processes a death. For an ELFI refinance or in-school private loan, that is AES at 1-866-763-6349 (elfi.aessuccess.org) or MOHELA (Private) at 1-855-282-4269 (elfi.mohela.com). If you do not know which one services the loan, start with ELFI's Customer Service Center at 1-844-601-3534 (1-844-601-ELFI) or answers@elfi.com, and ELFI can point you to the right servicer.

Yes. Federal student loans are discharged on the borrower's death under federal rule. Refinancing federal loans into an ELFI private loan replaces that federal rule with the terms of the ELFI loan agreement, and ELFI does not publish a death-discharge commitment. The same is true of a Parent PLUS refinance: the balance sits with the refinancing borrower and is governed by the ELFI agreement rather than by the federal Parent PLUS death-discharge rule. Confirm the specific loan's death terms in writing before refinancing away a federal protection.

It depends on the loan agreement. ELFI notes that cosigner treatment at death varies widely by lender: with some loans the primary borrower remains responsible for the balance, while some private loans make the entire remaining balance immediately due on the cosigner's death. ELFI directs borrowers to the promissory note to find what events trigger acceleration. ELFI also offers a cosigner release for living borrowers in good standing (typically after two consecutive years of on-time payments), which the primary borrower must initiate.

The assigned servicer (AES or MOHELA) needs a certified death certificate for the deceased borrower, along with the borrower's name and account number and contact information for the person reporting the death. Keep a copy of the ELFI promissory note or loan agreement if available, since it sets the death terms. Letters Testamentary or Letters of Administration are needed only if the servicer asks an estate representative to act on the account.

If the loan agreement does not discharge the balance on the borrower's death, the remaining balance is handled as a debt of the estate — presented and paid through the estate rather than out of an heir's own pocket. A surviving spouse is generally not automatically responsible unless they cosigned the loan or live in a community property state. Get ELFI's written position on the specific loan and treat any non-discharged balance as a creditor claim in the estate.

Call ELFI's Customer Service Center at 1-844-601-3534 (1-844-601-ELFI) or email answers@elfi.com; general correspondence can be mailed to ELFI, 12700 Kingston Pike, Knoxville, TN 37934. ELFI is a division of SouthEast Bank and can route you to the loan's servicer (AES or MOHELA), which processes the death and accepts the death certificate. Do not send payments or the death certificate to the ELFI corporate address — those go to the assigned servicer.