Yes, upon the death of the benefitting student, if the borrower dies and there is no cosigner, and if there is a cosigner, the loan will be forgiven only as to the deceased party. (studentloans.com)
If the ownership if «tenancy in common,» the deceased party's interest forms part of his / her estate and is distributed according to the will. (moneysense.ca)
Further to your question, if a home is owned in «joint tenancy,» the deceased party's interest simply passes to the other owner. (moneysense.ca)