If your school closes while you re enrolled or soon after you withdraw, you may be eligible for discharge of your federal student loan. 
Learn about the eligibility requirements for discharge and how you can apply. There are certain eligibility requirements to qualify for a closed school discharge ; you must apply to get a discharge. 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. 

Discharge Criteria 
You may be eligible for a 100 percent discharge of your William D. Ford Federal Direct Loan Direct Loan Program loans, Federal Family Education Loan FFEL Program loans, or Federal Perkins Loans if you were unable to complete your program because your school closed, and if you were enrolled when your school closed ; you were on an approved leave of absence when your school closed ; or your school closed within 120 days after you withdrew. You are not eligible for discharge of your loans if your school closes and any of the following is true : Except in exceptional circumstances , you withdrew more than 120 days before the school closed. You are completing a comparable educational program at another school through a teach-out, by transferring academic credits or hours earned at the closed school to another school , or by any other comparable means. You completed all the coursework for the program before the school closed, even if you did not receive a diploma or certificate. 

Discharge Process 
Contact your loan servicer 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 Discharge 
If you meet the eligibility requirements for a closed school discharge of your l

user: Hello, I have some questions about closed school loan discharges and I'd appreciate some answers.

assistant: Of course. Are you wondering what benefits you have by receiving a closed school loan discharge?

user: Yes, I am.

assistant: Receiving a closed school loan discharge gives you several advantages.

user: Well, before we get into that, I need to know something. My old school closed down and I took the credits from there to my new program at a new school. The fact that my school closed wasn't my fault, but does that mean I'm ineligible for discharge of the loans I received at the closed school now?

assistant: No. ransfer of credits from the closed school to a completely different program of study at the new school does not disqualify you for discharge.

user: What if I received a diploma without completing the program? Does that make me ineligible?

assistant: No. Before closing, some schools may issue a diploma or certificate to students who did not complete the program of study.

user: What if I meet the eligibility requirements for a closed school discharge and want my loans discharged?

assistant: Then you should contact your loan servicer about applying for a closed school discharge now instead of waiting for three years to receive an automatic closed school discharge.

user: I see. And what should I ask for when contacting my loan servicer?

assistant: One of the things you should do is finding out what happens if your loan discharge is denied.