Student Loans: You Might Not Owe If Your School Closed

Posted on: August 17, 2021
The information provided on this post does not, and is not intended to, represent legal advice. All information available on this site is for general informational purposes only. If you need legal help, you should contact a lawyer. You may be eligible for our free legal services and can apply by calling our Covid Legal Hotline at 1-844-244-7871 or applying online here.

What is a Closed School Loan Discharge?

It might be possible to cancel (“discharge”) your federal student loan if your school closed before you were able to complete your program.

How do I know if I’m eligible for this?

You had to be:

  • enrolled when your school closed OR
  • on an approved leave of absence when your school closed OR
  • your school closed shortly after you withdrew from the school:

- within 120 days (for loans received before July 1, 2020) OR

- 180 days (for loans received after July 1, 2020)

How do I find out if my school closed?

Look here for a list of schools that are closed and are under this program:

How do I apply?

You can find a copy of the application here. The completed application must be sent where you send payments (“the servicer”).  You can log in to My Federal Student Aid or call 1-800-4-FED-AID (1-800-433-3243) to find out who that is.

 I’ve submitted my application, now what?

Continue to make pay on your loan while your discharge application is being decided. If you do not get the loan discharge, the place you make payments will tell you and there will be no change in the payments you owe.  If you believe your application was denied in error, contact your loan service provider for more information.

For more information regarding the application process visit

What if my application was denied?

If your application was denied, you can first ask the Department to review the denial.  You can also appeal to federal court if denied.

What about course credits I earned?

If you like to continue your education at another school, you may be able to transfer your earned credits. The school you transfer to can decide what credits to accept and tell you what else you will need to graduate.  But, please look into any other school first before transferring.

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