Overview

When a college or training program closes while you’re enrolled (or shortly after you withdraw), federal student loan rules may let you apply for a closed-school or program discharge. These discharges cancel some or all federal loan balances when the borrower could not reasonably complete the educational program because of the closure. The U.S. Department of Education explains eligibility and the official filing path on StudentAid.gov (see: https://studentaid.gov/manage-loans/forgiveness-cancellation/closed-school).

As a financial advisor who’s helped clients apply for discharges, I’ve seen how the difference between a successful application and a denial often comes down to documentation: clear proof of enrollment, dates, and the school’s closure. This article walks through the specific documents you should collect, alternatives when records are missing, filing steps, common mistakes, and practical tips to speed processing.

Who is typically eligible?

Borrowers who may qualify for a closed-school or program discharge generally include those who:

  • Were enrolled when the school or program closed.
  • Withdrew within a short window before the official closure date (rules vary; provide evidence of withdrawal date).
  • Were on an approved leave of absence at the time the school or program closed.

If you completed your program before the school closed, you typically will not qualify for a closed-school discharge (but other paths, like borrower-defense, may apply). For the official eligibility rules, consult StudentAid.gov and the Consumer Financial Protection Bureau resources (https://studentaid.gov/manage-loans/forgiveness-cancellation/closed-school; https://www.consumerfinance.gov/).

Required documentation — what to gather first

Collect every document that ties you to the school, the program, and the closure. Aim for originals and official copies when possible. The stronger your paperwork, the easier it is for the loan servicer and the Department of Education to confirm eligibility.

Primary documents to include:

  • Enrollment records. Official transcripts, registration confirmation, class schedules, or admissions letters that show you were enrolled in the program. (Example: official transcript showing enrollment term)
  • Proof of dates. Documents showing the dates you attended, withdrew, or were on leave. Examples: withdrawal forms, leave-of-absence paperwork, or course add/drop records.
  • School closure notice. A letter or email from the institution, state higher-education agency, or accreditor announcing the closure or termination of the program. If you can’t find an official notice, screenshots of the school’s published announcement, emails sent to students, or state agency communications can help.
  • Loan statements and award letters. Your loan account statements, promissory notes, and federal award letters showing the loans tied to the school.
  • Transcripts and credit records. Unofficial or official transcripts to show the credits earned and the program you were pursuing.
  • Correspondence. Emails or letters between you and the school (billing or administrative communications), notices of teach-outs, and any messages about program changes.

Secondary or helpful documents:

  • Paystubs or financial aid disbursement records tied to enrollment periods.
  • Course syllabi or catalog pages showing the curricular requirement you were pursuing.
  • Screen captures of the school or program webpage showing accreditation, program length, and closure notice.
  • State agency or accreditor confirmation of the school’s closure.

What to do if official records are missing

Closed schools often leave incomplete or inaccessible records. If you can’t obtain originals, try these sources:

  • NSLDS (National Student Loan Data System). NSLDS maintains enrollment and loan-level data for federal loans. Pull your NSLDS report via StudentAid.gov as supporting evidence.
  • State higher-education agencies. Many states keep records or issued closure notices you can request.
  • Accreditor or third-party archives. Accrediting agencies sometimes maintain historical documentation.
  • Personal records. Emails, screenshots, class notes with dates, payment records, and communications with the school.
  • Former staff or classmates. If you can document contemporaneous statements and corroborating materials, they strengthen your claim.

Document every attempt to get records — the loan servicer or the Department of Education often accepts a reasonable explanation plus corroborating evidence when primary documents aren’t available.

Step-by-step: How to file for a closed-school or program discharge

  1. Confirm eligibility. Review StudentAid.gov’s closed-school discharge guidance (https://studentaid.gov/manage-loans/forgiveness-cancellation/closed-school) and compare your situation.
  2. Contact your federal loan servicer. Start with the servicer that manages your federal loans. They will explain the required forms and how to submit supporting documents.
  3. Complete the appropriate discharge request. The servicer or StudentAid.gov will direct you to the correct application. Keep copies of everything you submit.
  4. Submit documentation. Attach enrollment records, closure notice, transcripts, loan statements, and any corroborating evidence.
  5. Follow up in writing. After submission, ask for written confirmation of receipt and a case number. Note dates of phone calls and names of representatives.
  6. Appeal or provide additional evidence if denied. If the servicer denies the discharge, request the reason in writing and provide any missing evidence. You may escalate to the Department of Education or pursue borrower-defense options if applicable.

Timelines and realistic expectations

Processing times vary by servicer and complexity of the case. Simple cases with clear documents may be resolved in weeks; complex cases (missing records, transfers, or disputes) can take several months. Keep copies of all submissions and follow up regularly. If you need a payment hold while the discharge is considered, ask your servicer whether you can pause payments without further harm to your account.

Credit reporting and tax considerations

  • Credit reporting: A discharge may be reflected on credit reports. Generally, resolving the debt through discharge will remove the balance but may leave a notation that the loan was discharged — timeframes and wording vary. Monitor your credit reports after discharge.
  • Taxes: Tax treatment can differ depending on the type of discharge and current law. Check IRS guidance and the Department of Education statements. Consult a tax professional for personalized advice.

(Authoritative references: U.S. Department of Education StudentAid — closed school discharge page: https://studentaid.gov/manage-loans/forgiveness-cancellation/closed-school; Consumer Financial Protection Bureau — student loan resources: https://www.consumerfinance.gov/.)

How closed-school discharge differs from borrower-defense and other discharges

Closed-school discharge applies when the school or program closed and you could not complete your education because of that closure. Borrower-defense to repayment is a separate path that applies when the school engaged in unlawful practices or misrepresentations (see our detailed comparison here: “Closed-School Discharge vs Borrower Defense to Repayment: Key Differences” (https://finhelp.io/glossary/closed-school-discharge-vs-borrower-defense-to-repayment-key-differences/)).

If you want a procedural guide to filing, our step-by-step article walks through the application process in detail: “Applying for Closed-School Student Loan Discharge: Step-by-Step” (https://finhelp.io/glossary/applying-for-closed-school-student-loan-discharge-step-by-step/).

For additional context on when closed-school and borrower-defense discharges apply, see: “Closed-School and Borrower-Defense Discharges: When They Apply” (https://finhelp.io/glossary/closed-school-and-borrower-defense-discharges-when-they-apply/).

Common mistakes and how to avoid them

  • Assuming discharge is automatic. Schools closing do not automatically cancel your loan — you must apply and provide evidence.
  • Sending incomplete evidence. Include enrollment dates, withdrawal forms, and closure notices. Without dates, servicers may deny eligibility.
  • Not tracking communications. Keep written records of every call, submission, and response. Missing dates and names slows appeals.
  • Forgetting alternatives. If denied for closed-school discharge, evaluate borrower-defense, negotiations, or other repayment options.

Practical tips from experience

  • Start the evidence hunt right away. The longer you wait, the harder it can be to retrieve official records.
  • Pull your StudentAid.gov and NSLDS records early; they show loans and enrollment history and are accepted as supporting evidence.
  • Use multiple corroborating documents for the same fact (e.g., withdrawal date shown on both email and a billing record).
  • Ask for a payment pause or forbearance only if necessary; get any agreement in writing.
  • If the school’s website was taken down, archive copies, press releases from the state, or news stories that confirm closure strengthen your case.

Checklist before filing (quick copy)

  • Official or unofficial transcript showing enrollment term(s)
  • Withdrawal forms or leave-of-absence paperwork with dates
  • School closure notice (email, letter, state notice, accreditor communication)
  • Loan statements and promissory notes
  • StudentAid.gov/NSLDS report
  • Relevant email correspondence with the school
  • Copies of any teach-out or transfer communications

Next steps and resources

Professional disclaimer: This article is educational and based on current public guidance and my experience helping clients. It is not a substitute for legal, tax, or tailored financial advice. For complex cases, consult an attorney, tax professional, or a certified student loan counselor.

If you want, I can create a downloadable checklist or a sample evidence cover letter you can use when submitting your discharge request.