Closed School Discharge

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You may be eligible for complete discharge of your Federal Loans, Federal Family Education Loan (FFEL) loans, or Federal Perkins Loans under either of these circumstances:

  1.  If Your school closes within 120 days after you withdraw.
  2. If your school closes while you’re enrolled, and you do not complete your program because of the closure.
  3. If you were on an approved leave of absence, you are considered to have been enrolled at the school.

You are not eligible for school closure discharge of your loans if your school closes and any of the following is true:

  1. You withdraw more than 120 days before the school closes.
  2. You are completing a comparable educational program at another school by transferring academic credits or hours earned at the closed school to another school through a teach-out agreement with the school.
  3. You have completed all the coursework for the program, even if you have not received a diploma or certificate.   

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