If the borrower of the loan, or, in the case of a Parent Plus loan either the borrower or the student for whom the loan was taken should pass away, the loan will be fully discharged. To apply, first contact the loan holder by phone, who will put the loan on hold for up to sixty days. Submit to them a certified copy of the death certificate to obtain the discharge. If there are loans at multiple loan holders, you will need to notify and submit these certificates to all of them. Note that the amount of the discharge may be taxed to the deceased estate as income.