Resources
We recommend that you research all of the free government
programs available to you and apply to the best one that
fits your situation. Keep in mind that many government
programs have monthly or yearly requirements that you must
meet in order to stay in them.
Official Website for
Federal Student Aid
Closed School Discharges Are PausedA court has issued an injunction delaying the effective
date of the latest regulations governing closed school
discharges. As a result, at this time we are not
processing applications for closed school discharges. If
you have submitted an application, we will keep your
application on file. We are reviewing the impact of the
court’s action and will update this page with more
information as soon as it is available.
If your school closes while you’re enrolled or soon after
you withdraw, you may be eligible for discharge of your
federal student loan. Loan discharge is the removal of
your obligation to repay your loan under certain
circumstances.
There are certain eligibility requirements to qualify for
a closed school loan discharge; if the U.S. Department of
Education (ED) has sufficient information to determine you
qualify for a discharge, your loan will generally be
automatically discharged one year after your school
closes. However, you may always apply to get a discharge
sooner if you qualify.
It’s important for you to obtain your academic and
financial aid records if your school closes, since you
might need those records if you plan to attend another
school or want your student loans discharged.
Loan Discharge Criteria
You may be eligible for a full discharge of your William
D. Ford Federal Direct Loan (Direct Loan) Program loans,
Federal Family Education Loan (FFEL) Program loans, or
Federal Perkins Loans received to attend a school if you
were unable to complete your program of study because that
school closed, and
you were enrolled when your school closed;
you were on an approved leave of absence when your school
closed; or
your school closed within 180 days after you withdrew.
You are not eligible for discharge of your loans if your
school closes and any of the following is true:
You graduated or completed your program at the closed
school.
You withdrew more than 180 days before the school closed,
unless you can demonstrate an exceptional circumstance.
You're completing or have graduated from a teach-out
agreement at another school approved by the school’s
accrediting agency and, if applicable, the school’s state
authorizing agency.
You’re completing or have graduated from a program of
study at a different branch or location of the school that
closed.
Loan Discharge Process
If you meet the eligibility requirements for a discharge
of loans you obtained to attend a school that closed, your
loan holder will automatically send you an application you
can submit to your loan servicer.
Or, you can contact your loan servicer directly about the
application process for getting your loan discharged.
Be sure to continue to make payments on your loan while
your discharge application is being processed.
Find out what happens if your loan discharge is approved.
Find out what happens if your loan discharge is denied.
Automatic Closed School Loan Discharge
If your school closes on or after July 1, 2023, and you
meet the eligibility requirements for a closed school
discharge of your loans obtained to attend the closed
school, you will generally receive an automatic closed
school discharge one year after the date ED establishes as
the school’s official closure date. This discharge will be
initiated by ED, and you will be notified by your loan
servicer.
Although this closed school loan discharge is granted
automatically after one year has passed since your
school’s closure, you can always apply for and receive a
closed school discharge as soon as your school’s official
closure date is confirmed by the U.S. Department of
Education. If you 1) attended a school that closed less
than one year ago, 2) meet the eligibility requirements
for a closed school discharge, and 3) want your loans
discharged, contact your loan servicer about applying for
a closed school discharge now instead of waiting for one
year to receive an automatic closed school discharge.
List of Closed Schools
For a list of closed schools and additional guidance on
next steps if your school has closed, visit Has Your
School Closed?
Here’s What to Do.
Total and Permanent Disability DischargeYou may qualify for a total and permanent disability
discharge of your federal student loans and/or your
Teacher Education Assistance for College and Higher
Education (TEACH) Grant* service obligation if
you’re totally and permanently disabled, and
you have a Direct Loan, Federal Family Education Loan
(FFEL) Program loan, or Perkins Loan.
*TEACH Grant service obligations are discharged if the
grant recipient dies, or if the recipient is subject to
extended periods of qualifying military service.
Note for users who fill out the PDF form: The Department
of Education strives to make all content accessible to
everyone. While we work to ensure this document meets the
standards of Section 508 of the Rehabilitation Act of
1973, as amended, Federal Student Aid is working to create
an accessible version. If you need access to this document
before the accessible version is available, please contact
the Information Technology Accessibility Program Help Desk
at ITAPSupport@ed.gov to help facilitate.
Apply Now for Disability Discharge
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