Overview
MOHELA (Higher Education Loan Authority of the State of Missouri) is one of the largest servicers of federal student loans and also services private loans for lenders like SoFi and Laurel Road. When a borrower passes away, the process for handling the account depends heavily on whether the loans are federal or private.
Federal Student Loans:
Federal Direct Loans, FFEL Program loans, and Perkins Loans are eligible for Death Discharge. This means the remaining balance is canceled, and the estate is not responsible for the debt. For Parent PLUS loans, the loan is discharged if either the parent borrower or the student for whom the loan was taken passes away.
Private Student Loans:
Private loans (e.g., SoFi, Laurel Road) are governed by the loan agreement. Many modern private lenders offer death discharge, but some may attempt to collect from the estate or a co-signer.
This guide covers the notification process, the specific documents required for discharge, 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 MOHELA and consider consulting a qualified attorney.
Notification Process
How to Notify MOHELA of a Death
Step 1: Gather Loan Information
Before contacting MOHELA, try to determine if the loans are federal or private, as this affects the documentation needed. Have the following ready:
- Decedent's full name and Social Security number (SSN)
- Date of birth and Date of death
- Account number (if available)
- Your contact information (as the executor or family member)
Step 2: Call Customer Service
There is no dedicated "estate" phone line; the general customer service team handles death notifications.
- Phone: 1-888-866-4352 (Toll Free)
- Hours: Mon 8 AM – 11 PM, Tue–Fri 8 AM – 8 PM, Sat 10 AM – 2 PM ET
Inform the representative that the borrower (or student) has passed away. They will:
- Place a administrative forbearance on the account to stop payment demands for up to 60 days.
- Confirm the mailing address for the death certificate.
- Advise if any specific forms are needed (usually just the death certificate is sufficient).
Step 3: Submit the Death Certificate
You can submit the required documentation via mail, fax, or online upload (if you have login access).
Mail to:
MOHELA
633 Spirit Drive
Chesterfield, MO 63005-1243
Fax to:
866-222-7060
Upload:
If you have the borrower's login credentials (or if you are a co-signer with access), you can upload a scanned copy of the death certificate directly through the "Upload Documents" feature in the online portal.
Step 4: Confirmation and Discharge
MOHELA will review the documents.
- Federal Loans: Once verified, the loan balance is reduced to zero. Any payments made after the date of death will be refunded to the estate.
- Private Loans: MOHELA will coordinate with the lender (e.g., SoFi) to determine if the loan qualifies for discharge.
Required Documents
Documents MOHELA Requires
Federal Student Loans (Direct, FFEL, Perkins)
| Document | Details |
|---|---|
| Death Certificate | A clear photocopy is usually acceptable for federal loans. |
| Alternative Documentation | For Direct Loans only: If a death certificate is unavailable, MOHELA may accept verification from a county clerk, a funeral director's letter on official letterhead, or a newspaper obituary/announcement. |
Private Student Loans (SoFi, Laurel Road, etc.)
| Document | Details |
|---|---|
| Certified Death Certificate | Private lenders often require an original certified copy rather than a photocopy. |
| Executor/Administrator ID | Copy of your driver's license if you are requesting information. |
| Letters Testamentary | May be required to prove your authority if the lender needs to discuss account details beyond simple notification. |
Parent PLUS Loans
If the student for whom the loan was taken has died:
- Provide the student's death certificate.
- The loan is discharged, and the parent borrower is no longer responsible.
If the parent borrower has died:
- Provide the parent's death certificate.
- The loan is discharged; the debt does not transfer to the student or the estate.
Account Types
How MOHELA Handles Different Loan Types
Federal Direct Loans & FFELP Loans
Policy: Full Death Discharge.
Process: The loan is canceled upon receipt of proof of death. The debt is not passed to the estate or family members.
Taxability: Due to the Tax Cuts and Jobs Act, student loan death discharges were federally tax-free from 2018 through 2025. Note for 2026: Check with a tax professional to confirm if this provision has been extended or if the discharged amount is treated as taxable income.
Parent PLUS Loans
Policy: Full Death Discharge.
Process: Discharged if either the parent borrower or the student beneficiary dies.
Co-Endorser: If the loan had an endorser (co-signer), the endorser is also released from the obligation.
Private Student Loans (e.g., SoFi, Laurel Road)
Policy: Varies by lender.
Process: Most reputable private lenders (including SoFi) offer death discharge similar to federal loans. However, some older private loans may technically claim against the estate.
Co-Signers: Many modern private loans release the co-signer upon the borrower's death. Check the specific promissory note.
Consolidated Loans
Policy: Pro-rated Discharge.
Process: If two spouses consolidated loans into a single Joint Consolidation Loan (common in the past, now rare), only the portion attributable to the deceased spouse is discharged. The survivor remains responsible for their portion.
State Considerations
State-Specific Probate & Tax Rules
While federal student loan discharge is a federal process, state laws affect private loans and potential tax liability.
- State Taxes on Discharge: Even if the federal government does not tax the discharged debt, some states (e.g., Mississippi, Pennsylvania) may treat the canceled debt as taxable income for the estate.
- Community Property States: In states like Texas, California, and Arizona, debts incurred during marriage are often community debts. However, federal student loan death discharge preempts state community property law—the spouse is generally not liable.
- Private Loan Claims: If a private lender does not discharge the debt, they must file a creditor claim against the estate within the state's specific statute of limitations (usually 3–6 months after probate opens).
For detailed probate requirements, see our state and county probate guides.
Timelines
Estimated Timelines for Discharge
| Loan Type | Estimated Timeline | Key Factor |
|---|---|---|
| Federal Direct Loans | 30–60 days | Fast processing once death cert is received |
| Parent PLUS Loans | 30–60 days | Requires death cert of parent OR student |
| Private Loans (SoFi, etc.) | 4–8 weeks | Depends on the underlying lender's review |
| Refund of Overpayments | 60–90 days | Payments made after date of death are returned |
Note: MOHELA will suspend collection activity (administrative forbearance) immediately upon notification, so you should not receive bills while the discharge is processing.
Tips & Pitfalls
Common Pitfalls and Tips
Stop Auto-Debit Immediately
While MOHELA freezes accounts upon notification, there can be a lag. Manually cancel any auto-debits from the decedent's bank account to prevent overdrafts.
Do Not Consolidate After Death
If you are a surviving spouse with a Joint Consolidation Loan, do not reconsolidate or refinance the loan until the death discharge for the deceased spouse's portion has been fully processed. Doing so could inadvertently make you liable for the full balance.
Check for Co-Signer Release
For private loans, if the borrower died, the co-signer is often released. However, if the co-signer died, the borrower is usually still responsible for the loan, but the "co-signer" requirement might be removed.
Keep the "Paid in Full" Letter
Once the discharge is complete, MOHELA will send a letter confirming the balance is $0. Keep this document indefinitely as proof for the estate and for credit reporting disputes.
Refund of Payments
Any payments made from the estate or the borrower's bank account after the date of death are legally refundable. MOHELA typically issues this refund to the estate automatically, but you may need to follow up if it takes longer than 90 days.