School Closure Discharge
School Closure Discharge is typically for students of schools which close their doors either during, or within 120 days of enrollment at that institution. This program allows for students to have their loans discharged completely, allowing them to obtain new loans from another institution or to just wipe the slate clean altogether.
You may be eligible for a 100% discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans under either of these circumstances:
- Your school closes while you're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.
- Your school closes within 120 days after you withdraw.
- You are not eligible for discharge of your loans if your school closes and any of the following is true:
- You withdraw more than 120 days before the school closes.
- You are completing a comparable educational program at another school through a teach-out agreement with the school, by transferring academic credits or hours earned at the closed school to another school, or by any other comparable means.
- You have completed all the coursework for the program, even if you have not received a diploma or certificate.
By receiving a closed school loan discharge
- You have no further obligation to repay the loan
- You will receive reimbursement of payments made voluntarily or through forced collection, and the discharge will be reported to credit bureaus so as to delete any adverse credit history associated with the loan.
If you would like to see if you're eligible for Complete School Closure Discharge, contact us at (844) 499-5626