What happens to student loan after death?

Your federal loans are discharged when you die. If you passed away with federal student loan debt, then the loan will not pass on to anyone. This rule is applicable for Parent PLUS borrowers as well.

But, a death discharge form should be filled out by the family members to notify the Department of Education that the person who borrowed is no longer alive. The surviving family members should also send a copy of the debt certificate of the borrower to the school. This rule is applicable for the Federal Perkins loan, a direct Loan or FFEL program loan.

After sending all the documentations, the school or the servicer verify the subject and close the loan. As a result, the student loan will not affect anyone or the estate.