Learn more about Closed School Discharges for Federal Student Loan Borrowers
Q: Is it ever possible to extend the requirement that I must have withdrawn from the school 90 days before closure?
A: Yes. The government may extend this period if exceptional circumstances apply. The government has also increased the period for borrowers that attended certain correspondence schools.
Q: Can the government deny the closed school discharge if my school closed but I completed the program at another school? A: Under current regulations, yes. You must have been able to complete the program by transferring credits earned at the closed school to another school or if the two schools had a written “teach-out” agreement allowing students to complete their courses at another school if their original school closes.
Q: Is there anything I can do to stop collection while I am waiting for a response to a closed school discharge application?
A: Yes. One strategy is to request forbearance. Interest will continue to accrue, but collection will stop. If you want to go back to school before a decision on the discharge is made, you should consider reviewing repayment, loan rehabilitation, and consolidation options.
Q: Can I borrow to return to school if the decision on your closed school discharge is pending?
A: If you are in default, but want to go back to school before a decision on the discharge is made, you should consider reviewing repayment, loan rehabilitation, and consolidation options.
Q: What if I was on a leave of absence when the school closed?
A: A student on an approved leave of absence is treated as if she is still enrolled. If you did not return to school after a leave of absence, the withdrawal date will be the date that the school determined that you began the leave of absence. For purposes of a closed school discharge, a student on an approved leave of absence who tried but could not return to the school because it was closed should still be eligible for the discharge.
Q: What kind of proof can I submit if I think that the official school closure date is wrong?
A: Possible sources of information include dated newspaper articles or other media reports about the school’s closure. You might also try to collect declarations from other students, state regulators, or former school employees about the closure date.