Closed School Discharge — Wipe Out Federal Loans if the School Shut Down at the Wrong Time
What Is It?
Closed school discharge can cancel certain federal student loans if the school closed while you were enrolled or soon after you withdrew.
Why It Helps
- It can erase the debt from a program you never got to finish properly
- It does not depend on long-term repayment hardship
- It is one of the cleanest school-related discharge routes when the timing fits
What Most People Don’t Know
- The school-closing date and your withdrawal date are the key facts.
- A teach-out or comparable transfer option can change the outcome.
- This is often easier to prove than misconduct-based relief when the timeline fits.
Good To Know
- The withdrawal timing rule matters
- Teach-outs and comparable programs can affect eligibility
- Keep enrollment and withdrawal records