Table of Contents
No one plans for their student loans to outlive them. But as a borrower, it’s important to be aware of what happens to student loans when you die. There might be steps your loved ones need to take.
If you die before your federal student loans are paid off, your loans will typically be discharged (canceled), and your family will not be responsible for repaying them. However, with a private loan, that isn’t always the case. In certain instances there could be complications — especially if you have a cosigner on the loan.
Getting the facts now may help put your mind at ease. Here’s what can happen to your student loans after death.
Key Points
• Federal student loans are typically discharged when the borrower dies, meaning the balance is canceled and becomes zero and the government will not attempt to collect on the loan.
• Federal Parent PLUS loans are also discharged if either the parent borrower or the student on whose behalf the loan was obtained passes away.
• As of September 2026, there is no federal tax burden on federal loans discharged due to death, though some states may impose taxes on the discharged amount.
• Private student lenders are not legally required to cancel loans upon death, and if the lender does not discharge the debt, collection may come from the borrower’s estate, a loans cosigner, or the borrower’s spouse.
• More than 90% of undergraduate private student loans are cosigned, and cosigners are equally responsible for the debt, though some lenders may waive the remaining balance when the primary borrower dies.
What Happens to Federal Student Loans?
If you took out federal student loans, the loans will be discharged when you die. When a loan is discharged, the balance becomes zero and the government won’t try to collect on the loan.
Likewise, a federal Parent PLUS loan will be discharged if your parent dies or if you (the student on whose behalf your parent obtained the loan) die.
Make sure to provide your loved ones with the name of your loan servicer and your loan ID numbers. They would need to provide your servicer with that information along with confirmation of death, which is usually an original or certified copy of your death certificate.
The bottom line: If you have a federal student loan, you typically don’t need to worry about your relatives being burdened with the debt if you pass away.
Tax Implications of Federal Student Loan Discharge
If you are one of the millions of people with student loans in the U.S. and you die before your student loans are paid off, you might worry that there could be tax implications for the canceled or discharged amount of your loan.
However, as of September 2026, there is no federal tax burden once federal loans are discharged as a result of death.
It is possible that some states may impose taxes on the discharged loan amount after death. Because state tax laws may change frequently, it might be wise for your surviving family members to contact a tax professional to check on the current state guidelines.
What Happens to Private Student Loans?
The situation is different for borrowers with private student loans. According to the Consumer Financial Protection Bureau, private student lenders are not legally required to cancel private student loans for borrowers who die.
While some private lenders will cancel the loan upon the loan holder’s death, it typically depends on your lender’s policy and the loan agreement you signed. Make sure to read your loan agreement carefully to see what protections your lender offers. If you have questions, you might want to consult a lawyer.
In the case that the lender doesn’t discharge your loans after death, the lender would generally first try to collect the money from your estate. If you don’t have an estate, they would likely turn to your student loan cosigner, if you have one. If there isn’t a cosigner, then the lender may try to collect from your spouse.
Whether your spouse would be liable for the loan might depend on the state in which you live. If you reside in a community property state – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin – and took out the student loan while you were married, it’s possible that your spouse could be responsible.
Recommended: Bankruptcy and Student Loans
What Happens If You Have a Cosigner?
Private loans often involve a cosigner to help strengthen a borrower’s financial profile. Data suggests that more than 90% of undergraduate private student loans are cosigned.
A key responsibility of a cosigner on a loan is that they agree to pay the debt if the primary borrower defaults, which means they are equally responsible for the loan. If you die, a private lender might seek to collect payment from the cosigner. However, some lenders may waive the remaining debt if the primary borrower dies. Check your loan agreement and the lender’s policies for details.
If you have a student loan cosigner and you want to release them from the responsibility, you could consider refinancing the loan in your name. This might be an option if your credit, income, and employment history have strengthened since you took out the loan, and you can now qualify on your own.
Recommended: Applying for a Student Loan Cosigner Release
Truth in Lending Act Protections for Cosigners
The Truth in Lending Act (TILA) protects student loan cosigners by requiring private lenders to provide clear and detailed disclosures upfront about loan terms, costs, and the responsibilities, both financial and legal, of cosigning the loan. This information must be provided before the loan is signed and finalized.
The cosigner and the primary borrower get 30 days to review the loan disclosures and accept or decline them. The lender cannot change the terms of the loan during this time.
What Can You Do to Protect Loved Ones?
To help ensure that what happens to student loans when you die doesn’t negatively impact your loved ones, there are a few things you can do. One course of action is to pay off your student loans faster, if possible.
You might do this by increasing the amount you pay every month, going above your minimum monthly payment, shortening the repayment term, or even getting a lower interest rate if you qualify, through student loan refinancing. Note that refinancing federal loans means losing access to federal programs and benefits like forgiveness and deferment.
Another option is to build a savings cushion or emergency fund that could be put toward your debt if you die. And finally, if you have a cosigner on your loans, you could apply for a cosigner release to relieve them of responsibility for the loans.
How Student Loan Refinancing Can Help
While you might think that student loans die with you, that is not always the case. But there are things you can do now, including releasing a cosigner you have on the loan, or repaying your loans faster to potentially help protect your loved ones.
Refinancing student loans is one option to consider to potentially speed up repayment, or possibly get a lower interest rate to help save money — which may leave less of a financial obligation behind.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Do student loans die with you?
If you have federal student loans, the loans will typically be discharged, or canceled, when you die. However, if you have private student loans, the situation may be more complicated. Private lenders are not legally required to discharge student loans after death. While some private lenders do cancel loans after a borrower dies, it depends on the lender’s policy, whether there is a cosigner on the loan, and the loan agreement you signed. Read your loan agreement to find out what protections are in place in case of death, and contact the lender if you have questions.
Are student loans forgiven if you die?
If you have federal student loans, they are typically canceled, or forgiven, if you die. But that is not necessarily the case if you have private student loans. Private lenders are not legally required to cancel student loans. It generally depends on the lender’s policy and the loan agreement you signed as to whether the lender cancels the loans after death.
Does student loan debt reduce the value of my estate?
Federal student loans generally don’t affect the value of an estate, but private student loans might. Federal loans are typically discharged or canceled when a borrower dies, wiping out the debt. Private lenders are not legally required to cancel private student loans — it depends on the lender. If private loans are not canceled they could potentially impact the value of an estate.
How long does it typically take for a loan servicer to process a death discharge?
After receiving the required proof of death, which is typically an original death certificate or a certified copy, along with the person’s name, date of birth, Social Security number, and loan account number — it generally takes a lender 30 to 60 days (and sometimes up to 90 days) to process a death discharge.
What documents does a loan servicer require to discharge a deceased borrower’s student loans?
The documents a loan servicer requires to discharge a borrower’s student loans after death generally include an original death certificate or a certified copy, the person’s full name, their date of birth, their Social Security number, and then loan account number. You can contact the loan servicer directly to find out whether any additional information is needed.
This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
SOSLR-Q326-055