Student Loans and Your Will: What Happens After Death?

Emma graduated from Manchester University in 2022 with £48,000 in student loans. At 26, living with her partner Jake in a rented flat in Leeds, she kept putting off writing a will. "Why would I need one?" she thought. "I've got more debt than savings."

When Emma died unexpectedly in a cycling accident in 2024, her £48,000 student loan was automatically written off. But Jake, her partner of five years, discovered he had no legal right to inherit anything—not her £12,000 in savings, her car, or even the engagement ring they'd chosen together.

Under UK intestacy rules, everything went to Emma's estranged parents. Jake was left with nothing, despite living as a couple and sharing everything.

This is the reality facing millions of UK graduates with outstanding student debt: your student loan doesn't pass to your loved ones when you die, but without a will, your assets might go to the wrong people. This article explains exactly what happens to UK student loans after death, why graduates still urgently need wills, and how to protect the people you love—regardless of how much student debt you carry.

The Good News: UK Student Loans Are Automatically Written Off at Death

UK student loans are completely written off when you die. This applies to all UK student loan plans—Plan 1, 2, 4, 5, and Postgraduate loans—regardless of how much you owe.

Your family won't owe a penny. The Student Loans Company simply cancels the debt once they're notified of your death.

This matters to a lot of people. As of March 2025, outstanding student loan debt in the UK reached £267 billion, with around 1.5 million higher education students currently receiving loans. For borrowers who finished their course in 2024, the average debt was £53,000 when they first became liable to repay.

Unlike other debts—credit cards, personal loans, car finance, mortgages—student loans do not form part of your estate. This means they won't reduce what your beneficiaries inherit. Other debts must be paid from your estate before distribution, but student loans are automatically cancelled.

Student loans are the only type of debt in the UK that automatically disappears at death. It's a government-backed system designed to support education access, and death cancellation is built into the loan terms.

Your loved ones will never have to repay your student debt, no matter how large.

What Your Family Needs to Do to Cancel the Student Loan

When someone with a UK student loan dies, the family must formally notify the Student Loans Company to cancel the debt. Without notification, automatic repayments may continue temporarily from the deceased's bank account.

Here's what's needed:

Required documents:

An original or certified copy of the death certificate
The customer reference number (CRN) from the deceased's student loan statements

Where to find the CRN:

On student loan annual statements
In the online student loan account
On email correspondence from the Student Loans Company

How to contact the Student Loans Company:

Phone: 0300 100 0611
Online: Submit through the official GOV.UK guidance page
Post: Student Loans Company, Glasgow, G51 1HJ

The cancellation typically takes 4-6 weeks to process once the SLC receives the required documents. If any automatic payments were taken after the death date, the SLC will refund them once notified.

David's family notified the Student Loans Company three weeks after his death. They needed his CRN from an old statement and a certified copy of his death certificate. The SLC confirmed cancellation within two weeks and refunded the £180 automatic payment taken after his death.

Who should handle this?

The executor named in the will typically manages this task, as they're responsible for managing the deceased's affairs. If there's no will, the court-appointed administrator handles it—though this process takes longer and costs more.

Why Graduates Still Need a Will—The Issues Student Debt Doesn't Solve

Student loans disappearing at death is good news. But it doesn't protect your assets, your partner, or your wishes.

Here's what a will addresses that student loan write-off doesn't solve:

1. Unmarried partners have zero automatic inheritance rights

Under UK intestacy rules, unmarried partners receive absolutely nothing, regardless of how long you've lived together. Everything goes to parents, siblings, or other blood relatives. Your partner could lose your shared home, your savings, everything you built together.

2. Digital assets need someone to manage them

Your photos in cloud storage, social media accounts, online banking, email accounts, cryptocurrency—someone needs legal authority to access and manage these. Without a will specifying your wishes, your digital life may be locked away forever.

3. Personal possessions with sentimental value

Family heirlooms, jewelry, collections, gifts from loved ones—these go by intestacy rules if you don't have a will. The engagement ring you chose together might go to family who doesn't know its significance.

4. Any savings or assets should go where you want

Even £5,000 in savings should go where you choose, not where intestacy rules dictate. You worked for that money—you should decide who benefits from it.

5. Future considerations matter now

Naming guardians for children you may have later, planning for property you may buy, protecting a business you may start—your will evolves with you.

According to the Money and Pensions Service, 56% of UK adults aged 18 and over don't have a will. Many graduates assume their student debt means they have nothing worth protecting.

Here's the truth: being in debt doesn't mean you have nothing worth protecting—it means the people you love get nothing without a will.

The Unmarried Partner Problem: Your Biggest Risk

This is the critical issue most graduates face: UK law does not recognize "common law marriage."

Even if you've lived with your partner for 20 years, you have no automatic inheritance rights.

Under intestacy rules, unmarried partners receive nothing. The estate goes in this order: spouse (but unmarried partners don't count), children, parents, siblings, grandparents, aunts/uncles, cousins, and finally the Crown. Your partner gets nothing.

This applies even if you:

Own property together as tenants in common
Have children together
Have joint bank accounts
Consider yourselves married in every practical sense

The numbers are stark. In 2024, there were 3.5 million cohabiting couple families in the UK, representing 17.7% of all families. Cohabiting couples are the fastest-growing family type in the UK. Yet most have no idea they're completely unprotected.

Priya and Marcus lived together for seven years and owned their £280,000 flat as tenants in common, with each owning 50%. When Marcus died without a will at 31, Priya discovered she had no automatic right to his 50% share.

Under intestacy rules, Marcus's parents inherited his half of the property. Priya faced an impossible choice: buy out his parents for £140,000 plus legal fees, or sell the flat and split the proceeds. She couldn't afford the buyout on her salary.

The legal battle to stay in her home took 14 months and cost her £8,000 in solicitor fees. She eventually had to sell the flat and move.

Can unmarried partners make a claim?

Yes, but it's difficult, expensive, and uncertain. Unmarried partners may make a claim under the Inheritance (Provision for Family and Dependants) Act 1975, but they must prove either:

Financial dependency on the deceased, or
Living together as spouses in the same household for at least two years immediately before death

Even meeting these criteria doesn't guarantee success. You must:

Make a court application within six months of probate
Pay legal fees of £5,000-£15,000 or more
Wait 12-18 months for resolution
Accept you may receive less than you'd expect

The court only awards what's "reasonable for maintenance"—a lower standard than spouses receive. And there's no guarantee you'll win.

Tax implications:

Unlike married couples, unmarried partners pay inheritance tax on anything they inherit. Married couples and civil partners are exempt from inheritance tax on assets passing between them. For unmarried partners, anything over the £325,000 threshold is taxed at 40%.

A £49.99 will from WUHLD protects your partner completely. Without it, they could lose everything.

Other Assets Graduates Need to Protect in a Will

Most graduates have more worth protecting than they realize. Student debt doesn't erase what you've built.

Savings accounts:

Even £2,000-£5,000 should go where you choose. You worked for that money. Without a will, intestacy rules decide who inherits it.

Vehicles:

If you own a car worth £3,000-£8,000, that's a significant asset. Without a will, it legally belongs to your estate and goes by intestacy rules—not to your partner who might desperately need it.

Personal possessions:

Your laptop, phone, camera equipment, musical instruments, jewelry, collections—these have both financial and sentimental value. Your partner or best friend should inherit items with meaning, not distant relatives who don't know their significance.

Sentimental items:

Family heirlooms, gifts from loved ones, photos, letters, the engagement ring you chose together—intestacy doesn't account for emotional value.

Digital assets:

Photos in cloud storage, social media accounts, email, cryptocurrency, NFTs, domain names—these need explicit instructions for access and management. Many platforms lock accounts permanently after death without proper legal authority.

Future assets:

Property deposits you're saving for, inheritance you may receive from grandparents, investments you're building—your will protects what you haven't acquired yet as well as what you have now.

Workplace death-in-service benefits:

Many employers offer death-in-service benefits of 2-4 times your annual salary. If you earn £30,000, that could be £60,000-£120,000 paid out when you die. While pension death benefits typically use nomination forms separate from your will, your will ensures everything aligns with your wishes.

Intellectual property:

If you're a creative professional, you may own rights to photography, writing, music, designs, or other intellectual property. Without a will, these rights pass by intestacy rules.

Business interests:

Freelancers, sole traders, and those with partnership shares need to specify what happens to business assets and client relationships.

You're not "too broke" for a will—you're protecting what matters most to the people you love.

Understanding UK Intestacy Rules for Young Adults

Intestacy means dying without a valid will. When this happens, UK legal rules—not your wishes—determine who inherits.

Here's how intestacy works for unmarried people with no children:

1. Spouse or civil partner inherits everything

But unmarried partners don't count, regardless of relationship length.

2. If no spouse, everything goes to parents

Both parents split the estate equally if both are alive. One parent inherits everything if only one is alive.

3. If no parents, everything goes to siblings

Full siblings split the estate equally. Half-siblings only inherit if no full siblings exist.

4. Further order:

If no siblings, the estate goes to: grandparents, then aunts/uncles, then cousins, and finally the Crown.

Why intestacy is terrible for graduates:

Estranged family members may inherit instead of close friends or chosen family. Your partner you live with gets nothing. You have no control over who manages your affairs—the court appoints an administrator. The process takes 9-12 months compared to 3-6 months with a will.

Intestacy with young children:

If you have children but no will, intestacy determines who inherits your estate, but guardianship is a separate court process. The court decides who raises your children, and it may not be the person you'd choose.

Cost implications:

Intestacy administration costs more due to higher legal fees and court costs. Your loved ones pay more and wait longer for everything to be settled.

With a Will vs. Without a Will

Situation	With a Will	Without a Will (Intestacy)
Unmarried partner	Inherits everything you specify	Inherits nothing
Close friend	Can inherit	Cannot inherit
Charity you support	Can inherit	Cannot inherit
Estranged parent	Can be excluded	Automatically inherits
Who decides distribution	You decide	Government decides
Time to settle estate	3-6 months	9-12 months
Cost to administer	Lower legal fees	Higher fees and court costs

Special Considerations for Graduates and Young Professionals

Your life is in transition. Your will can evolve with you, but you need basic protection now.

Moving abroad for work:

If you move abroad, your UK will may become invalid depending on the country. Your student loan is still written off if you die abroad, but estate administration becomes complex if you die in a country with different inheritance laws. Consider specialist legal advice if you're planning to emigrate.

Career stage benefits:

Junior doctors, teachers, public sector workers, and many private sector employees have excellent death-in-service benefits—often 2-4 times annual salary. A teacher earning £28,000 might have £56,000-£112,000 in death benefits. Make sure your will aligns with your pension nomination forms.

Future family planning:

You can name guardians for children you don't have yet. When you have children later, the guardianship provisions activate automatically. Update your will when circumstances change, but start with protection now.

Joint tenancy vs. tenants in common:

If you buy property with your partner, the ownership structure matters hugely. Joint tenants means the property automatically passes to the surviving owner, regardless of your will. Tenants in common means each person's share is distributed according to their will—or by intestacy if there's no will.

Crypto and digital assets:

Cryptocurrency, NFTs, and other digital assets are increasingly common among young professionals. These must be explicitly addressed in your will with access instructions, or they may be lost forever.

Side hustles and businesses:

Freelance income, Etsy shops, YouTube channels with monetization, social media accounts with brand partnerships—specify what happens to these income streams and digital properties.

International students and expats:

UK student loans for UK students and eligible EU students under SLC loans are written off at death. International students with private education loans should check their specific loan terms, as these may differ. If you're a UK citizen living abroad, different estate rules may apply—consult a solicitor with cross-border estate planning experience.

Student loan plan differences:

All UK government student loan plans (Plan 1, 2, 4, 5, and Postgraduate) are written off at death. Know which plan you have for other financial planning purposes, but the death cancellation policy is universal.

Your life is in transition, but your will can evolve with you. Start with basic protection now; update as circumstances change.

How to Create a Will That Protects What Matters

Young professionals need specific elements in their wills to protect what matters most.

What to include:

1. Name a trusted executor

Choose someone reliable—a friend, sibling, partner, or parent you trust—to manage your estate. This person ensures your wishes are carried out, handles legal administration, and distributes your assets.

2. Clearly specify beneficiaries

Name your unmarried partner explicitly. Specify who receives specific assets or percentages of your estate. Be precise to avoid disputes.

3. Distribute specific items with sentimental value

State who receives your engagement ring, family heirlooms, collections, or gifts with emotional significance.

4. Name guardians for any children

If you have children now or may have them in future, name who should raise them if you die. This prevents court battles and ensures your children go to someone you trust.

5. Include digital asset instructions

List important accounts, passwords (stored securely), and wishes for social media, photos, and digital property.

6. Specify funeral preferences

State your wishes for burial or cremation, ceremony preferences, and any specific requests to ease the burden on your loved ones.

Traditional solicitor costs vs. WUHLD:

Traditional solicitor-drafted wills typically cost £650 or more. For many graduates with student debt, this feels impossible alongside rent, bills, and loan repayments.

WUHLD offers an alternative: a legally valid will for £49.99, completed online in 15 minutes.

What you get with WUHLD:

Your complete, legally binding will
A 12-page Testator Guide explaining execution requirements
A Witness Guide for your witnesses
A Complete Asset Inventory document

You can preview your entire will free before paying—no credit card required. WUHLD is a one-time payment with no subscriptions. When your circumstances change (new partner, children, property, promotion), you can update your will for £49.99.

When you need a solicitor:

WUHLD's online service is ideal for straightforward estates—single or multiple beneficiaries, simple asset distribution, naming guardians, excluding specific family members. If you have complex circumstances, consult a specialist wills and probate solicitor:

Multiple properties or overseas assets
Business ownership or partnership shares
Substantial wealth approaching the £325,000 inheritance tax threshold
Complicated family dynamics requiring careful drafting
Trusts for vulnerable beneficiaries

For typical graduate situations—unmarried couples, rented accommodation, modest savings, vehicles, personal possessions—WUHLD provides complete legal protection without solicitor costs.

How to talk to your partner about wills:

Normalize the conversation. Frame it as protecting each other, not preparing for death. Mention this article or a news story about intestacy. Do it together online in 15 minutes rather than making it a formal, intimidating process.

Most graduate estates are straightforward. WUHLD's online service provides complete legal protection without solicitor costs.

What Happens If You Die Without a Will—Real Consequences

Understanding what your loved ones face without a will creates urgency to act now.

Administrative nightmare:

Your partner or family must apply for Letters of Administration, which is more complex and expensive than probate with a will. The process requires additional court forms, legal documentation, and often solicitor assistance.

Court-appointed administrator:

If there's no obvious next-of-kin or family disputes arise, the court decides who manages your estate. This person may not be who you'd choose.

Extended timeline:

Intestacy administration takes 9-12 months compared to 3-6 months with a will. During this time, your loved ones cannot access funds, close accounts, or finalize your affairs.

Higher costs:

Legal fees for intestacy administration are typically 20-30% higher than probate with a will. Your estate pays more, leaving less for beneficiaries.

Family conflict:

Without clear instructions, disputes arise over possessions, money, and funeral arrangements. Siblings may fight. Parents and partners may clash. Friends feel excluded. All during grief.

Emotional burden:

Your loved ones must make difficult decisions during the worst time of their lives without knowing your wishes. What would you have wanted? Where should you be buried? Who gets your grandmother's ring? They're left guessing.

Financial hardship:

If your unmarried partner lives in your property, they may face immediate eviction by the inheriting family members. If you have joint debts or rent, your partner must cover everything alone while waiting months for any potential inheritance claim to resolve.

Locked accounts:

Bank accounts freeze immediately upon death. Your partner cannot access shared expenses, bills, or emergency funds without a court order, which takes months.

Debt complications:

While student loans are automatically written off, other debts—credit cards, overdrafts, car finance—must still be paid from your estate before distribution. If your estate has insufficient assets, these debts can complicate administration and delay settlement.

Sarah and Tom lived together for six years. When Sarah died suddenly at 29 without a will, Tom discovered she had £15,000 in savings and a car worth £7,000. Under intestacy, everything went to Sarah's parents, with whom she'd had a difficult relationship.

Tom had to move out of their rented flat within two months because he couldn't afford rent alone. He received nothing. Sarah's parents inherited everything and donated it to a charity Sarah had never supported.

The entire process took 11 months. Tom was left grieving, homeless, and with no financial support from the life they'd built together.

Writing a will isn't about preparing for death—it's about protecting the people you love while you're alive. Your student loans disappear when you die. Make sure your partner, your assets, and your wishes don't disappear too.

Frequently Asked Questions

Q: Do I need to mention my student loan in my will?

A: No. UK student loans are automatically written off when you die and do not form part of your estate. You don't need to mention student debt in your will. Your will should focus on distributing your assets, not addressing debts that cancel automatically.

Q: What happens if I die before finishing my degree?

A: Your student loan is still completely written off. The cancellation policy applies regardless of whether you completed your course. Your family must notify the Student Loans Company with a death certificate and customer reference number.

Q: Can my parents claim my student loan back from my estate?

A: No. Student loans cannot be claimed from your estate by anyone—not the Student Loans Company, not family members, not creditors. Unlike other debts, student loans are cancelled in full and never reduce your beneficiaries' inheritance.

Q: Do international students have the same student loan death policy?

A: UK government student loans (Plans 1, 2, 4, 5, and Postgraduate) for UK and eligible EU students are written off at death. International students with private education loans should check their specific loan terms, as private loans may have different policies. Private loans are not automatically cancelled like government student loans.

Q: What happens to my student loan if I become permanently disabled?

A: If you become permanently disabled and are unfit for work, you can apply to have your student loan written off while you're still alive. This is separate from the death cancellation policy. Contact the Student Loans Company with medical evidence to apply for disability cancellation.

Protect Your Partner and Your Future Today

Key takeaways:

UK student loans are automatically written off when you die—your family will never owe this debt
Your family must notify the Student Loans Company with a death certificate and customer reference number to cancel the loan
Student loan write-off doesn't protect your partner, assets, or wishes—you still need a will
Unmarried partners have zero automatic inheritance rights; without a will, they inherit nothing regardless of relationship length
Young professionals have more worth protecting than they realize: savings, vehicles, possessions, digital assets, and death-in-service benefits

You worked hard for your degree, and you're building a life worth protecting. Your student debt will disappear when you die, but the people you love shouldn't lose everything because you didn't take 15 minutes to write a will.

Protecting your partner and family isn't about having wealth—it's about making sure your wishes are honored and the people you care about are looked after.

Create your legally valid UK will with WUHLD for just £49.99—no solicitor appointments, no hidden fees, no subscriptions. In 15 minutes online, you'll protect your partner, specify your wishes, and gain complete peace of mind.

Preview your will completely free before paying—no credit card required. You'll receive four documents: your will, a 12-page Testator Guide, a Witness Guide, and a Complete Asset Inventory.

Start protecting what matters most today. Your student loans will take care of themselves.

Preview Your Will Free – No Payment Required

Legal Disclaimer: This article provides general information about UK student loan death policies and estate planning. It does not constitute legal advice. For advice specific to your individual situation, please consult a qualified solicitor. WUHLD's online will service is suitable for straightforward UK estates. If you have complex circumstances—multiple properties, overseas assets, business ownership, significant wealth approaching the £325,000 inheritance tax threshold, or complicated family situations—please consult a specialist wills and probate solicitor.

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