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 Direct Loans, alternative documentation may be accepted. If a death certificate is unavailable, please provide alternate documentation so MOHELA can attempt to obtain the necessary verification to process a discharge request. Alternative documentation should include the decedent’s name and date of birth. Examples include:

  • 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:

    MOHELA
    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

As a result of a change in tax law, the Internal Revenue Service (IRS) has determined that loan balances that are discharged due to Death are not considered income for federal tax purposes if the discharge occurs during the period from January 1, 2018, through December 31, 2025. If you receive a Form 1099-C, you should keep the form with the borrower’s records, but you do not need to include it when filing the borrower’s federal tax return. For additional information, visit irs.gov  this link will open in a new window .

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