Overview
Discover Student Loans has exited the student loan market. As of 2025, the servicing of Discover Student Loans has been transferred to Firstmark Services (a division of Nelnet). While the loans originated with Discover, all estate matters, death notifications, and discharge requests must now be handled through Firstmark Services.
When a primary borrower passes away, Discover Student Loans (private student loans) typically offer death discharge (forgiveness), meaning the estate is not responsible for the balance. However, you must notify Firstmark Services and provide a certified death certificate to initiate this process.
This guide covers the process for handling former Discover Student Loans now serviced by Firstmark Services.
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 Firstmark Services and consider consulting a qualified attorney.
Notification Process
How to Notify Firstmark Services (for Discover Loans) of a Death
Step 1: Gather Initial Information
Before contacting Firstmark Services, have the following ready:
- Deceased borrower's full legal name
- Social Security number or Account Number (10-digit number found on statements)
- Date of death
- Your name and relationship to the deceased
- A certified copy of the death certificate
Step 2: Call Customer Service
Contact Firstmark Services to report the death. There is no dedicated "estate" line, so use the main customer service number and state that you are reporting a borrower's death.
- Phone: (888) 538-7378
- Hours: Mon–Fri, 7 AM – 8 PM CT
When you speak to a representative:
- Inform them the borrower has passed away.
- Request that the account be placed in a forbearance or administrative hold to stop payment demands.
- Ask for the specific case number or reference ID for the estate claim.
- Confirm the mailing address for the death certificate.
Step 3: Submit the Death Certificate
Mail a certified copy of the death certificate to the correspondence address. Include a cover letter with the borrower's name and account number.
Mail to:
Firstmark Services
P.O. Box 82522
Lincoln, NE 68501-2522
Overnight/Courier Address:
Firstmark Services
121 S. 13th St, Ste 201
Lincoln, NE 68508
Step 4: Wait for Confirmation of Discharge
Once the death certificate is processed:
- Loan Discharge: If the deceased was the primary borrower, the loan balance is typically discharged (forgiven).
- Cosigner Release: If there was a cosigner, the primary borrower's death may release the cosigner from future obligations, or the loan may be discharged entirely depending on the specific loan agreement.
- Processing Time: Allow 30–60 days for the review to be completed. You should receive a letter confirming the loan has been paid in full or discharged.
Required Documents
Documents Required for Loan Discharge
To process a death discharge for a Discover Student Loan (serviced by Firstmark), you generally need:
Primary Document
| Document | Details |
|---|---|
| Certified Death Certificate | Must be an original certified copy with a raised seal. |
Optional / Situation-Specific
| Document | Details |
|---|---|
| Letter of Instruction | A simple letter stating your request (e.g., "Please discharge loan due to death of borrower") including the account number and your contact info. |
| Executor / Administrator Appointment | If the lender requires you to prove you represent the estate (rare for simple discharge, but possible). |
Account Types
How Discover Student Loans Are Handled After Death
Private Student Loans (Primary Borrower Deceased)
Discover Student Loans are private loans. Unlike federal loans, private lenders are not required by federal law to discharge loans upon death, but Discover's policy typically allows for full discharge when the primary borrower dies. Firstmark Services honors the terms of the original loan agreement.
Outcome: The loan balance is forgiven. The estate is not liable.
Private Student Loans (Cosigner Deceased)
If the cosigner passes away but the primary borrower (student) is still alive:
- The primary borrower is still responsible for the loan.
- Discover/Firstmark typically does not place the loan in default (automatic default upon cosigner death was common in the past but is now rare).
- The borrower may request to have the cosigner removed from the account.
Private Student Loans (Cosigner Living, Borrower Deceased)
If the primary borrower dies and there is a surviving cosigner:
- Check the loan contract. Most Discover loans offer cosigner release upon the student's death, meaning the cosigner is not responsible for the balance.
- The cosigner should contact Firstmark Services immediately to ensure the debt is not negatively reported to credit bureaus during processing.
State Considerations
State Probate & Student Loans
While student loan discharge is primarily determined by the loan contract, state laws regarding estate debts can apply if the lender attempts to collect from the estate (which is rare for Discover loans due to their discharge policy).
- Community Property States: In states like Texas, California, and Arizona, debts incurred during marriage might be considered community debts. However, student loan death discharge policies usually override this by forgiving the debt entirely.
- Creditor Claims: If the loan is not discharged (unlikely), the lender would have to file a claim against the estate within the state's specific creditor claim period (usually 3–6 months after probate opens).
For detailed probate requirements, see our state and county probate guides.
Timelines
Estimated Timeline for Discharge
| Stage | Estimated Time |
|---|---|
| Initial Notification | Immediate (Phone call) |
| Document Processing | 7–14 business days after receipt |
| Final Review & Discharge | 30–60 days |
| Credit Bureau Update | 30–90 days (to show "Paid in Full" or "Discharged") |
Note: Continue to monitor the account status until you receive written confirmation of the discharge. If automatic payments are active, ensure they are canceled immediately to prevent overdrafts.
Tips & Pitfalls
Common Pitfalls and Tips
Stop Automatic Payments Immediately
Even after notifying them by phone, automatic payments might continue until the "deceased" flag is fully processed. Contact the deceased's bank to stop the ACH transfer if necessary.
Do Not Pay Off the Balance
If the loan is eligible for discharge (which Discover loans are), do not make payments from the estate's funds. You cannot typically get a refund for voluntary payments made after death.
Check for "Tuition Insurance"
Some private loans or school packages include tuition insurance that might cover outstanding balances in case of death.
Keep the Confirmation Letter
Once the loan is discharged, keep the confirmation letter indefinitely. It is proof that the debt is settled if it ever reappears on a credit report or if the debt is accidentally sold to a collector.