What to do when a Nelnet account holder dies
Contact Nelnet — 5-step process, 2 required documents, and federal death discharges are typically processed within about 30-60 days after nelnet receives acceptable proof of death.
Nelnet Loan Servicing
Phone1-888-486-4722
Fax1-877-402-5816
Mailing Address
Nelnet, P.O. Box 82561, Lincoln, NE 68501-2561
WebsiteLearn more→
Nelnet Loan Servicing
Phone1-888-486-4722
Fax1-877-402-5816
Mailing Address
Nelnet, P.O. Box 82561, Lincoln, NE 68501-2561
WebsiteLearn more→
Nelnet Claims (Discharge, Forgiveness, and Bankruptcy)
Phone1-888-486-4722
Fax1-877-402-5816
Mailing Address
Nelnet, Attn: Claims, P.O. Box 82505, Lincoln, NE 68501-2505
Verified Jul 2026
After a Nelnet account holder dies, accounts with beneficiary designations or trust ownership transfer to the designated recipients without probate. Solely-owned accounts require the estate's representative to contact Nelnet's Nelnet Claims (Discharge, Forgiveness, and Bankruptcy) at 1-888-486-4722 with the proper legal authority documents.
Gather the account holder's full name, date of birth, and any known account or policy numbers before contacting Nelnet. A certified death certificate is the primary document required to start any claim.
Death claim process
Follow these steps to file a death claim with Nelnet:
Filing a claim
1
Contact Nelnet at 1-888-486-4722 to report the borrower's death and pause billing while the discharge is processed
2
Submit acceptable proof of death to Nelnet. Under 34 CFR 685.212(a), any of the following is accepted:
- An original or certified copy of the death certificate
- An accurate and complete photocopy of the original or certified copy
- A scanned or faxed copy of the original or certified copy
3
Include the deceased borrower's full name and Nelnet account number with the documentation so it can be matched to the account
4
Nelnet reviews the proof of death and discharges the federal loans; no further payments are owed and the estate is not billed for the discharged balance
5
For a Parent PLUS loan, the loan is discharged whether the parent borrower died or the student on whose behalf it was borrowed died
Required Documents
- Proof of death of the borrower (or, for a Parent PLUS loan, of the parent borrower or the student on whose behalf it was borrowed): an original or certified copy of the death certificate, an accurate and complete photocopy, or a scanned/faxed copy
- The deceased borrower's name and Nelnet account number noted on the documentation
What to know at this institution
Federal student loans serviced by Nelnet are discharged on death; the balance is not passed to the estate or to surviving family (a Parent PLUS loan is not transferred to the student and a student loan is not transferred to a parent). Documents can also be uploaded through the borrower's account at nelnet.com if the family has login access. Loan amounts discharged due to death are not treated as taxable income for federal purposes when the discharge occurs on or after January 1, 2018. Nelnet services federal loans on behalf of the U.S. Department of Education; it is not the lender.
Prepare your letter of instruction to Nelnet
Nelnet accepts a claimant-drafted letter of instruction. We draft it for you — addressed to Nelnet's verified claims department, with the documents it requires enclosed.
Build your letter of instructionExpected timelines at Nelnet: Federal death discharges are typically processed within about 30-60 days after Nelnet receives acceptable proof of death. Delays are almost always caused by incomplete paperwork—gathering all required documents before filing the initial claim helps avoid back-and-forth.
To process a claim, Nelnet needs Proof of death of the borrower (or, for a Parent PLUS loan, of the parent borrower or the student on whose behalf it was borrowed): an original or certified copy of the death certificate, an accurate and complete photocopy, or a scanned/faxed copy and The deceased borrower's name and Nelnet account number noted on the documentation. Death certificates and court documents must be certified copies—photocopies are not accepted.
Frequently asked questions
Under federal rules (34 CFR 685.212(a)), a federal Direct Loan is discharged when the borrower dies. Once Nelnet receives acceptable proof of death, the remaining balance is cancelled, no further payments are owed, and the balance is not passed to the estate or to surviving family.
A Direct Parent PLUS loan is discharged if either the parent who borrowed it dies OR the student on whose behalf it was borrowed dies (34 CFR 685.212(a)). The loan is not transferred to the student, and the parent's estate is not billed for the balance.
Federal rules allow an original or certified copy of the death certificate, an accurate and complete photocopy of the original or certified copy, or a scanned/faxed copy. An original is not required. The Department of Education may also verify a death through an authoritative federal or state database.
Proof of death can be mailed to Nelnet, Attn: Claims, P.O. Box 82505, Lincoln, NE 68501-2505 (the discharge/forgiveness address), or to general correspondence at Nelnet, P.O. Box 82561, Lincoln, NE 68501-2561. It can also be faxed to 1-877-402-5816 or uploaded through the borrower's account at nelnet.com. Call 1-888-486-4722 first to confirm and to pause billing.
Call Nelnet at 1-888-486-4722 to report the death and request that billing be paused while the discharge is reviewed. Federal death discharges are typically processed within about 30-60 days after Nelnet receives acceptable proof of death.
Federal loan amounts discharged due to death are not treated as taxable income for federal purposes when the discharge occurs on or after January 1, 2018. State tax treatment can differ; a tax professional can address a specific state.
Nelnet is a servicer. It collects payments and administers federal Direct Loans on behalf of the U.S. Department of Education, which is the lender. A federal death discharge is governed by federal regulation regardless of which servicer holds the account.
A federal death discharge is documented by submitting acceptable proof of death to the servicer; it is not a borrower-signed forgiveness application. A family member can send a short cover note identifying the deceased borrower and account number along with the death certificate.
Nelnet's Nelnet Claims (Discharge, Forgiveness, and Bankruptcy) can be reached by phone at 1-888-486-4722 and fax at 1-877-402-5816 for questions throughout the claims process.
Multiple Nelnet student loans may mean multiple claims. Some account types can be processed together, but others require their own documentation. Check with the Nelnet Claims (Discharge, Forgiveness, and Bankruptcy) to confirm what applies.
Sources
Data sourced from Nelnet primary sources (4 pages reviewed). How we research.
Nelnet Loan Servicing
Phone1-888-486-4722
Fax1-877-402-5816
Mailing Address
Nelnet, P.O. Box 82561, Lincoln, NE 68501-2561
WebsiteLearn more→
Nelnet Loan Servicing
Phone1-888-486-4722
Fax1-877-402-5816
Mailing Address
Nelnet, P.O. Box 82561, Lincoln, NE 68501-2561
WebsiteLearn more→
Nelnet Claims (Discharge, Forgiveness, and Bankruptcy)
Phone1-888-486-4722
Fax1-877-402-5816
Mailing Address
Nelnet, Attn: Claims, P.O. Box 82505, Lincoln, NE 68501-2505
Verified Jul 2026
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