Academia Support Center

Education Your Way

Closed School Discharge

TL;DR: if you hold a Direct Loan, Federal Family Education Loan Program (FFEL) Loan, or a Federal Perkins loan you may get up to 100% of your loan discharged if you are unable to complete your program due to school closure (with certain conditions).

Oh really?

Yeah. If you were enrolled when your school closed or were on an approved leave of absence and you withdrew from your school within 120 days of it closing you can have all of your debt discharged.

Sounds a bit too easy.

Well, if you withdraw more than 120 days before your school closes, were on a teach-out, or are going to transfer or have transferred your credits to another program then you may not be eligible.

Otherwise, contact your loan servicer to begin the process.

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