Overview
Citizens Student Loans (a division of Citizens Bank) is a major provider of private student loans and student loan refinancing. When a borrower or student beneficiary passes away, the estate representative must notify the servicer to initiate the loan discharge process.
Citizens Bank typically services its private student loans either in-house or through Firstmark Services. The notification process and mailing address may vary slightly depending on which entity services the specific loan.
Key Policy: Citizens Bank generally offers death discharge for its private student loans. If the primary student borrower dies, the remaining loan balance is typically forgiven, and co-signers are released from the obligation.
This guide covers the notification process for both Citizens-serviced and Firstmark-serviced loans, required documentation for discharge, and what to expect regarding co-signer release.
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 Citizens Student Loans and consider consulting a qualified attorney.
Notification Process
How to Notify Citizens Student Loans of a Death
Step 1: Identify the Servicer
Check the borrower's latest billing statement or credit report to confirm if the loan is serviced by Citizens Bank directly or Firstmark Services.
- Citizens Serviced: Account numbers usually start with specific prefixes.
- Firstmark Serviced: Statements will explicitly say "Firstmark Services."
Step 2: Call the Student Loan Department
Contact the specific student loan support line rather than the general bank customer service.
- Phone: (833) 531-1312 (Citizens Student Loan Support)
- Alternative (Firstmark): (888) 538-7378
- Hours: Mon–Fri, 8:00 AM – 9:00 PM ET
When you speak to a representative:
- Report the death of the borrower (or student beneficiary).
- Request that the account be placed in administrative forbearance to stop payment demands during the review.
- Ask for the specific mailing address or fax number to send the death certificate, as this depends on the loan type.
- Request a case reference number.
Step 3: Submit the Death Certificate
Mail a certified copy or a clear photocopy (if allowed by the agent) of the death certificate to the address provided.
Common Address for Firstmark Services:
Firstmark Services
P.O. Box 82522
Lincoln, NE 68501-2522
For Citizens-Serviced Loans:
Verify the correct mailing address by calling (833) 531-1312, as the address varies by loan type.
Note: Always write the loan account number on the top right corner of the death certificate.
Step 4: Confirmation of Discharge
Once the document is processed (typically 2–4 weeks), Citizens will send a letter confirming:
- The loan has been discharged (cancelled).
- The co-signer (if any) has been released.
- The account balance is zero.
Required Documents
Documents Citizens Requires
For student loan discharge, the requirements are generally simpler than for bank accounts.
Standard Requirements
| Document | Details |
|---|---|
| Certified Death Certificate | Primary proof required for discharge. |
| Letter of Instruction | A brief letter stating the borrower has passed and requesting loan discharge. Include the account number and your contact info. |
For Co-Signer Release
| Document | Details |
|---|---|
| Death Certificate | Proof of the primary borrower's death is usually sufficient to release the co-signer. |
For Estate Executors (If Refund Due)
| Document | Details |
|---|---|
| Letters Testamentary | Required only if the estate is claiming a refund for payments made after the date of death. |
Account Types
How Citizens Handles Student Loans After Death
Private Student Loans (Student Death)
If the student borrower dies, Citizens Bank policy typically allows for the full discharge of the remaining loan balance. The debt is forgiven and does not become a liability of the estate.
Timeline: 30–60 days for processing.
Private Student Loans (Co-Signer Death)
If the co-signer dies but the student borrower is still alive, the loan remains active. The student borrower is responsible for continuing payments. However, the "automatic default" clause (where the loan becomes due immediately upon a co-signer's death) is rarely enforced by major lenders like Citizens anymore. The borrower may be able to apply for a new co-signer or co-signer release if they meet credit requirements.
Parent Loans
If a parent took out a loan for a student (similar to a Parent PLUS loan but private), and the parent dies, the loan may become a liability of the parent's estate unless the loan agreement has a specific death discharge clause. Check the promissory note. If the student for whom the parent borrowed dies, Citizens may discharge the debt, but this is discretionary and policy-dependent.
Federal Student Loans
If Citizens is servicing a federal loan (FFELP), federal law mandates discharge upon the death of the borrower or the student for whom a PLUS loan was taken.
Timeline: 30–60 days.
State Considerations
How Your State Affects the Process
While student loan discharge is largely a matter of contract and federal policy, state probate laws can impact the estate if a loan is not discharged.
- Community Property States: In states like TX, CA, and AZ, a surviving spouse might be liable for student loan debt incurred during the marriage if it is not discharged.
- Estate Solvency: If a loan is not discharged (rare for Citizens), it becomes a general unsecured claim against the estate.
Key State Variations
| State | Community Property? | Impact on Student Loans |
|---|---|---|
| California | Yes | Spouse may be liable if debt is not discharged. |
| Texas | Yes | Spouse may be liable if debt is not discharged. |
| New York | No | Debt generally falls only on the estate/co-signer. |
For detailed probate requirements, see our state and county probate guides.
Timelines
How Long Citizens Takes to Process Discharge
| Process Step | Estimated Timeline | Key Factor |
|---|---|---|
| Initial Notification | Immediate | Stops collection calls and letters. |
| Document Processing | 2–4 weeks | Time for mail room to scan and verify death certificate. |
| Final Discharge Letter | 30–60 days | Official confirmation of zero balance. |
| Credit Bureau Update | 30–90 days | Loan status updated to "Deceased" or "Paid in Full" on credit reports. |
Note: Continue to monitor the account or ask for a forbearance to prevent missed payments from hurting the co-signer's credit during the review period.
Tips & Pitfalls
Common Pitfalls and Tips
Stop Auto-Pay Immediately
If you have access, turn off auto-pay to prevent payments from being drafted after death. Refunding these payments can be a slow process requiring estate documentation.
Protect the Co-Signer's Credit
Request an administrative forbearance immediately during the notification call. This pauses payments so that the time taken to process the death certificate doesn't result in "missed payments" on the co-signer's credit report.
Verify the Servicer
Citizens uses Firstmark Services for many loans. Sending documents to Citizens Bank's general address instead of Firstmark can cause weeks of delay. Check the billing statement!
Keep the Case Number
Always write down the case number or reference ID provided by the agent. This allows you to track the status without re-verifying all the details every time you call.