Short answer: Federal student loans are discharged upon death with proof; mortgages and auto loans don’t disappear—they’re usually handled by the estate or assumed by eligible heirs per federal rules and the loan contract.

Student Loans

• Federal loans (including Parent PLUS): Typically discharged when the borrower (or the student for Parent PLUS) dies; submit death certificate to servicer. Payments made after the date of death are refunded to the estate.
• Private loans: Policies vary—some lenders forgive, others claim against the estate or a co-signer. Check the note. (See CFPB’s general debt-after-death rules).

Sample Letter to Servicer (Death Discharge Request)

Re: Death Discharge — Loan #[XXXX] for [Borrower/Student]
Enclosed: death certificate; proof of representative status. Please process a death discharge and confirm in writing. Return any post-death payments to the estate.

Mortgages

• Inheriting the home: Federal rules (CFPB guidance) and the Garn-St. Germain Act allow certain heirs/survivors to assume or continue the mortgage without triggering a due-on-sale clause, so they can keep the home or pursue a modification. Contact the servicer’s Successor-in-Interest team promptly.
• What to expect: The estate/heir keeps payments current or resolves via sale/refi. Servicers must work with eligible successors in a timely way.

Sample Script to Mortgage Servicer

“I’m the successor-in-interest/executor for [Property Address]. Please recognize me, provide the assumption/loan-mod packet, and pause unnecessary collection until recognition is processed. I can upload the death certificate and letters.”

Car Loans

• Estate or co-signer responsibility: Auto loans are secured; if payments stop and no resolution is reached, repossession is possible. Co-signers remain fully liable. 

Sample Letter to Auto Lender (Estate Notice)

Re: Estate of [Name] — Auto Loan #[XXXX]
I’m the personal representative. Please provide the exact payoff, next due date, and options (assumption/refi/sale). Enclosed are my authority documents and the death certificate. Direct all communications to the estate address above.

Checklist: Handling Loans the Right Way

• Student loans: Send death certificate to servicer; request written discharge (federal) or policy review (private).
• Mortgage: Notify servicer; request successor-in-interest recognition and assumption/retention options.
• Auto: Notify lender; maintain payments during estate administration or arrange payoff/sale.
• For all: Keep a binder: letters, receipts, payoff statements, and closure confirmations (needed for probate).

Related Reads (Internal Links)

• How to Pull a Credit Report for a Deceased Person
• Credit Reports After Death: What Surviving Family Members Should Know

Call to Action

Tie out the big three first: student loans (discharge), mortgage (assume or sell), auto (payoff/plan). Put every agreement in writing.