Death Discharge

In the unfortunate situation when a borrower or the dependent student of a PLUS Loan passes, their federal student loan(s) may be eligible for partial or full discharge. MOHELA can assist you during this difficult time.

Please provide us a copy of the death certificate (clear photo copy is acceptable).

For borrowers with federally-owned loans (Direct Loans), alternative documentation may be accepted. If a death certificate is unavailable, please provide the following so MOHELA can attempt to obtain the necessary verification to process a discharge request:

  • Alternative documentation including both the decedent’s name and date of birth.

    • Verification from an official of a county clerk’s office stating that the decedent is deceased, but that a death certificate could not be readily provided.

    • A letter from a clergyman or funeral director on official letterhead.

    • An announcement of the student/borrower's death from a local newspaper.

Please submit the death certificate or alternative documentation (Direct Loans only) to:

  • Fax to 1-866-222-7060 (Toll Free)

  • Upload by logging in and clicking Upload

  • Mail to:

633 Spirit Drive
Chesterfield, MO 63005

Payments made after the confirmed date of death are returned to the estate prior to the discharge of the remaining balance.

If no acceptable proof of death is received, MOHELA will begin servicing the borrower's loans at the same level of delinquency as when MOHELA received the initial death notification.

If you have any questions regarding the process, please don’t hesitate to contact us.

Tax Implications if Your Loans are Discharged

Beginning January 1, 2018, discharges due to Death are not considered income by the Internal Revenue Service. Therefore, you will not have to pay federal income tax on your discharged loans.

The discharged loan amount may be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.