Your College Has Closed: How To Get Your Student Loan Discharged

"If your school closed down before you were able to earn a degree, it’s possible you may not have to repay your federal student loans. Applying for a closed-school loan discharge can lead to some or all of your federal students loans being forgiven. Here’s what you need to know about closed-school discharge.

What Is a Closed-School Loan Discharge?

A closed-school discharge occurs when eligible federal student loans are cancelled because your school permanently closed. Loans available for discharge include direct loans, Federal Family Education Loans (FFEL) and Perkins loans.

FFEL loans are federal loans issued by banks. These are older loans issued before federal loans came directly from the U.S. Department of Education. Perkins loans, federal student loans based on financial need with lower interest rates, also are no longer issued. Therefore, recent student loans are likely direct loans. To confirm which kinds of loans you have, log into your account at studentaid.gov.

Closed-School Loan Discharge Eligibility

You are eligible for closed-school loan discharge if the school closes while you are enrolled, although that isn’t a prerequisite. You also can ask for a discharge if you:

Were on an approved leave of absence and you haven’t finished your degree or program
Withdrew within 120 days of when the school closed." …

https://www.forbes.com/advisor/student-loans/closed-school-discharge/