- H3: What Does “Closed School” Mean for Student Loans?
- Define “closed school” in the context of student loans.
- Explain the implications for students who are enrolled or recently withdrew.
- H3: How Does Closed School Discharge Work?
- Explain the eligibility criteria:
- School closed while you were enrolled.
- School closed shortly after your withdrawal.
- You were unable to complete your program.
- You did not finish your program at another school or receive a comparable education.
- Describe the application process.
- Mention the types of federal loans eligible (Direct Loans, FFEL Program Loans, PLUS Loans).
- Explain the eligibility criteria:
- H3: Real-World Examples of Closed School Discharge
- Provide hypothetical scenarios of students who benefited from this discharge.
- Example: A student enrolled in an online program that suddenly shut down.
- Example: A student who withdrew a few months before their for-profit college declared bankruptcy and closed.
- H3: Who is Affected by Closed School Discharge?
- Discuss borrowers from for-profit colleges, proprietary schools, or vocational programs.
- Mention students who may have been unaware of their school’s financial instability.
- H3: Tips for Applying for Closed School Discharge
- Advise borrowers to gather documentation (enrollment verification, withdrawal dates, communications from the school).
- Suggest checking the Department of Education’s website for the most current information and application forms.
- Emphasize the importance of acting promptly.
- H3: Common Misconceptions About Closed School Discharge
- Clarify that it only applies to federal loans, not private loans.
- Address the myth that you automatically get a discharge if your school closes.
- Explain that you may need to repay loans if you completed your program elsewhere or received a comparable education.
- H3: Sources
- List credible sources with hyperlinks.
Can't Finish Your Degree? What Is Closed School Discharge?
Closed School Discharge is a U.S. Department of Education program that erases federal student loan debt for borrowers whose schools abruptly closed. To qualify, you must have been unable to complete your program due to the closure, and not have finished your coursework at another institution or obtained a comparable education elsewhere.
