What Happens to Student Loan Debt When a Borrower Dies?

Student loan debt is a major financial burden for college graduates. The total amount of student loan debt in the U.S has reached an all time high of 1.5 trillion dollars, with borrowers owing an average of $37,172 per person from student loans taken out to finance their education. But what happens when a borrower dies while still owing on those loans?

The answer depends on the type of loan and who cosigned it with the deceased individual, if anyone. Federal student loans are generally discharged upon death, unless there is a co-signer or endorser on the account that is still alive – then they may become responsible for the remaining balance due. Private student loans require more investigation as lenders have more discretion over how to handle these situations and will often require proof of death before discharging any remaining balance due.

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