In the unfortunate case that a borrower dies and still has a remaining federal student loan balance, the loan(s) can completely discharged.
Parent PLUS loans can be discharged if the borrower (in this case, the parent) dies or if the student on whose behalf the loan was borrowed dies. In the case of spousal Consolidation loans, only the portion of the loan attributed to the deceased borrower can be discharged.
In order to resolve a deceased's federal student loans, the estate executor must send an original or certified copy of the borrower's death certificate (photocopies are typically acceptable) to the borrower's school (for Perkins loans) or loan servicer (Direct or FFEL Program loans).