A loan can be discharged if the borrower dies or if the borrower of a PLUS loan (whether a student or parent) dies. A PLUS loan made to a parent borrower is also discharged in the event of the death of the student on whose behalf the loan was obtained.
What to Do:
The party that holds the loan must receive an original, certified copy, or a clear, accurate, and complete photocopy of the original or certified copy of the death certificate. The U.S. Department of Education cannot accept a faxed copy. Check a recent demand letter or bill for this loan; if the address to which you are requested to send payment is the National Payment Center in Atlanta, GA, you should submit this documentation to:
U.S. Department of Education