Overview
Edfinancial Services is a major federal student loan servicer that manages Direct Loans and FFELP loans on behalf of the U.S. Department of Education. When a borrower or a student for whom a Parent PLUS loan was taken passes away, federal student loans are eligible for Death Discharge, meaning the remaining balance is canceled and does not need to be repaid by the estate or family members.
This guide covers the specific process for notifying Edfinancial, submitting the required proof of death, and confirming the loan discharge. Because Edfinancial services federal loans, the process is governed by federal regulations which are generally more favorable than private loan policies.
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 Edfinancial and consider consulting a qualified attorney.
Notification Process
How to Notify Edfinancial of a Death
Step 1: Gather Initial Information
Before contacting Edfinancial, have the following ready:
- Decedent's full legal name and date of birth
- Social Security number (SSN) or account number
- Date of death
- Your contact information as the representative
Step 2: Call Customer Service
While you can mail documents directly, calling first allows Edfinancial to place a hold on the account to stop billing statements and collection calls while the discharge is processed.
- Phone: (855) 337-6884
- Hours: Mon 8 AM – 11 PM, Tue–Fri 8 AM – 8 PM, Sat 10 AM – 2 PM ET
Inform the representative that the borrower has passed away and you are requesting a Death Discharge. They will update the account status and confirm the mailing address for the death certificate.
Step 3: Submit the Death Certificate
To officially discharge the loan, you must mail a certified copy or an original death certificate. Photocopies are typically not accepted for federal loan discharge.
Mail to:
Edfinancial Services
P.O. Box 36008
Knoxville, TN 37930-6008
Note: If you have FFELP or private loans serviced by Edfinancial, check your billing statement, as the correspondence address may differ (often P.O. Box 36014).
Step 4: Wait for Processing
Once Edfinancial receives the death certificate, they will forward the discharge request to the U.S. Department of Education for final approval.
- Processing time: Typically 30–60 days
- Confirmation: You will receive a letter confirming the loan has been discharged (canceled).
Step 5: Refund of Payments (If Applicable)
If any payments were made on the account after the date of death, those funds will be returned to the estate or the person who made the payment.
Required Documents
Documents Edfinancial Requires
For federal student loans, the documentation requirement is straightforward.
Always Required
| Document | Details |
|---|---|
| Certified Death Certificate | Must be an original or certified copy with a raised seal. Photocopies are generally not accepted. |
| Letter of Instruction | Optional but recommended. Include the borrower's name, SSN, and your contact info. |
For Parent PLUS Loans
If the student for whom the loan was taken has passed away, the loan is also eligible for discharge.
| Document | Details |
|---|---|
| Student's Death Certificate | Certified copy of the student's death certificate. |
| Parent's ID/Account Info | To identify the correct loan account. |
Account Types
How Edfinancial Handles Different Loan Types
Federal Direct Loans (Subsidized/Unsubsidized)
If the primary borrower dies, the loan is fully discharged. The debt is canceled and is not passed on to the estate or family members.
Timeline: 30–60 days
Parent PLUS Loans
Parent PLUS loans are discharged if either the parent borrower or the student for whom the loan was taken passes away.
- If the Parent Borrower dies: The loan is discharged.
- If the Student dies: The loan is discharged.
Timeline: 30–60 days
Consolidated Loans
If a consolidation loan includes only the decedent's loans, it is discharged. If it is a Joint Spousal Consolidation Loan (rare, from older programs), only the portion attributable to the deceased borrower is discharged; the surviving spouse remains responsible for their portion.
Timeline: 30–90 days
Private Student Loans
If Edfinancial services a private student loan (non-federal), the terms depend on the specific lender's promissory note. Many private lenders offer death discharge, but some may claim against the estate. You must check the specific loan agreement.
Timeline: Varies by lender
State Considerations
How Your State Affects the Edfinancial Process
Federal student loan discharge is governed by federal law (Higher Education Act), so the process is consistent across all 50 states. State probate laws generally do not interfere with the federal discharge right.
However, for private loans or if the estate is due a refund of overpayments:
- Probate Requirement: If a large refund is due to the estate, Edfinancial may require Letters Testamentary or Letters of Administration to release the funds to the estate representative.
- Tax Implications: Federal student loan discharge due to death is generally not considered taxable income for federal tax purposes (under the Tax Cuts and Jobs Act of 2017 and subsequent extensions). Check with a tax professional regarding state taxes.
Timelines
How Long Edfinancial Takes to Process Discharge
| Account Type | Estimated Timeline | Key Factor |
|---|---|---|
| Federal Direct Loan | 30–60 days | Depends on Dept of Education approval |
| Parent PLUS Loan | 30–60 days | Requires death cert of parent OR student |
| Payment Refund | 4–8 weeks | Returned if paid after date of death |
| Private Loan | Varies | Depends on lender policy |
Note: During the processing period, billing should be suspended. If you receive a bill, call customer service immediately.
Tips & Pitfalls
Common Pitfalls and Tips
Stop Auto-Debit Immediately
If the decedent had Auto Pay set up, call Edfinancial immediately to cancel it. While payments made after death are refundable, it can take months to get the money back.
Send Certified Mail
Always send the death certificate via Certified Mail with Return Receipt. This gives you proof of delivery in case the document is lost.
Do Not Consolidate After Death
Do not attempt to consolidate loans or change repayment plans after the borrower's death. This can complicate the discharge process.
Check for Co-Signers (Private Loans)
For private loans, if there is a co-signer, check if the lender offers "co-signer release" upon death. For federal loans, there are no co-signers (except for Endorsers on PLUS loans, who are released upon the borrower's death).
Keep the Case Number
When you first call, ask for a reference number or case number for the death notification. Keep this for your records.