What to do when a Sallie Mae Bank account holder dies

The funds belong to the surviving account holder(s), and the bank may pay the balance to any account holder even if another account holder has died.¹

The designated beneficiaries receive equal shares of the funds without going through probate.²

Unless the account documentation provides otherwise, the funds in an individual SmartyPig account belong to the deceased person's estate.³

The bank may waive the CD early withdrawal penalty when an account owner dies.^{2, 1}

If a student dies, the student's Sallie Mae student loan may be eligible to have the remaining balance waived.⁴

Student loans, including a waiver of the remaining balance after a student's death⁴

Sallie Mae Bank continues to accept and process deposits to the account until it has actual notice of the death and a reasonable chance to act.^{1, 3}

On notification of the death, the bank freezes individual accounts, disallowing any withdrawals or transfers, until the documents it asks for are presented. Additional documents may be required depending on the account's ownership.^{1, 3}