Overview
Aidvantage is a federal student loan servicer managed by Maximus Education, LLC, handling millions of federal student loan accounts (formerly serviced by Navient). When a borrower or student beneficiary passes away, federal student loans are eligible for a Death Discharge, meaning the remaining balance is forgiven and does not need to be paid by the estate or family members.
The process involves notifying Aidvantage and submitting proof of death. Once approved, the discharge applies to:
* Direct Loans (Subsidized, Unsubsidized, PLUS)
* FFEL Program Loans
* Perkins Loans (if serviced by Aidvantage)
This guide covers the specific steps to obtain a death discharge from Aidvantage, including the mailing address for death certificates and what to expect regarding timelines.
This guide provides informational guidance only. It is not legal advice, and SwiftProbate is not a law firm. Laws and institutional procedures change — verify current requirements directly with Aidvantage and consider consulting a qualified attorney.
Notification Process
How to Notify Aidvantage of a Death
Step 1: Gather Initial Information
Before contacting Aidvantage, have the following ready:
- Decedent's full legal name
- Date of birth
- Social Security number (SSN)
- Account number (found on billing statements)
- Your contact information as the representative
Step 2: Call Customer Service
Contact Aidvantage to report the death and stop collection activity:
- Phone: 800-722-1300
- Hours: Mon 8am–11pm, Tue–Fri 8am–8pm, Sat 10am–2pm ET
When you speak to a representative:
- Inform them you are reporting the death of a borrower (or student for Parent PLUS loans).
- Request an administrative forbearance (payment pause) while the discharge is processed.
- Confirm the mailing address or fax number for submitting the death certificate.
Step 3: Submit the Death Certificate
You must submit a certified copy or a clear photocopy of the death certificate (policies vary, but certified is recommended to avoid delays).
Mail to:
Aidvantage – Federal Student Aid Loan Servicing
P.O. Box 300001
Greenville, TX 75403-3001
Or Fax to:
866-266-0178
Tip: Include a cover letter with the borrower's name and account number/SSN to ensure it is matched to the correct file.
Step 4: Wait for Processing
After Aidvantage receives the documentation:
- The account will be placed in a non-pay status.
- The Department of Education will review the discharge request.
- Processing time: Typically 30–90 days.
Step 5: Confirmation of Discharge
Once approved, you will receive a final letter confirming the loan balance is $0.00. If any payments were made after the date of death, they will be refunded to the estate or the person who made the payment.
Required Documents
Documents Aidvantage Requires
For federal student loan discharge, the documentation is straightforward but strict.
Standard Death Discharge
| Document | Details |
|---|---|
| Death Certificate | Original certified copy or clear photocopy (verify with agent). Must show cause of death is not required, but date of death is essential. |
| Cover Letter | Include Borrower's Name, SSN, and Account Number. |
Parent PLUS Loans
If the parent borrower dies OR the student for whom the loan was taken dies, the loan is discharged.
| Document | Details |
|---|---|
| Death Certificate | Of the parent borrower OR the student. |
| Proof of Relationship | Usually already on file, but birth certificate may be requested if unclear. |
Total and Permanent Disability (TPD) Discharge
If the borrower died while a TPD application was pending, the discharge should still proceed based on death.
| Document | Details |
|---|---|
| Death Certificate | Submit to the TPD servicer (Nelnet) or Aidvantage directly. |
Account Types
How Aidvantage Handles Different Loan Types
Federal Direct Loans (Subsidized & Unsubsidized)
These loans are 100% discharged upon the death of the borrower. The debt is not passed on to the estate or family members.
Timeline: 30–60 days
Parent PLUS Loans
Parent PLUS loans are discharged if:
- The parent borrower dies, OR
- The student (for whom the loan was taken) dies.
In either case, the debt is cancelled. It does not transfer to the surviving parent or the student.
Timeline: 30–60 days
Private Student Loans
Aidvantage primarily services federal loans. If the deceased had private loans serviced by Aidvantage (rare, but possible if legacy Navient accounts moved), the terms depend on the promissory note. Many private lenders now offer death discharge, but it is not guaranteed by federal law.
Timeline: Varies by lender policy
Co-Signed Loans
For federal loans, there are no co-signers (except PLUS loan endorsers). For private loans, if there is a co-signer, they may be responsible for the balance unless the lender has a "co-signer release" policy upon death.
Timeline: Immediate review required
State Considerations
How Your State Affects the Aidvantage Process
Since Aidvantage services federal loans, the discharge process is governed by federal law (Higher Education Act), not state probate law. This means:
- Probate is not required to discharge the loans.
- State inheritance taxes generally do not apply to discharged debt.
- Federal Tax: As of the Tax Cuts and Jobs Act (2018), student loan death discharges are federally tax-free.
However, if the estate receives a refund for payments made after death, that refund is an asset of the estate and may be subject to state probate procedures if the amount is significant.
Key State Variations
| State | Tax on Discharge? | Notable Rules |
|---|---|---|
| Most States | No | Most states conform to federal tax treatment of discharged debt. |
| Exceptions | Check local CPA | A few states may treat discharged debt as taxable income (rare for death discharge). |
Timelines
How Long Aidvantage Takes to Discharge Loans
| Account Type | Estimated Timeline | Key Factor |
|---|---|---|
| Federal Direct Loan | 30–60 days | Submission of death certificate |
| Parent PLUS Loan | 30–60 days | Death of parent OR student |
| Payment Refund | 60–90 days | Refund of payments made after death |
| Credit Bureau Update | 60–90 days | Updates to "Deceased/Discharged" status |
Note: Timelines can be longer during periods of high volume or regulatory changes at the Department of Education.
Tips & Pitfalls
Common Pitfalls and Tips
Stop Auto-Debit Immediately
While Aidvantage usually freezes accounts upon notification, you should manually cancel any Auto-Pay arrangements to prevent overdrafts in the deceased's bank account.
Do Not Consolidate After Death
Do not attempt to consolidate the deceased's loans with your own or another person's loans. This can complicate the discharge process.
Refunds for Overpayment
If payments were made from the estate after the date of death, Aidvantage is required to refund those payments. Ensure the estate has a bank account open to receive these funds if they are sent via check.
Check for Endorsers
If a PLUS loan had an endorser (similar to a co-signer), the endorser is also released from the obligation upon the borrower's or student's death.
Keep the Confirmation Letter
Retain the final discharge letter indefinitely. It is proof that the debt is settled and may be needed if the debt incorrectly reappears on a credit report later.