student loan repaid when school closes

Does A Student Loan Have To Be Paid Back If The School Closed?

If you obtained a federal student loan for a school that closed, you may be eligible to have your loan discharged.

If you weren’t able to complete your program because the college or university you got the student loan for closed down – and you weren’t transferred to another campus that would accept your student loan – you may be eligible for a discharge of your student loan.

You are eligible for this type of discharge under the following conditions:

  • The school closed while you were enrolled in a program
  • The school closed within 90 days after you withdrew from the school

In both of the above situations, it’s important that you track down all paperwork associated with your student loan, and also gather materials that show you were a student there.

You will also need to submit a closed school discharge application form.

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