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: I have some questions about closed school loan discharges.

assistant: Do you want to know which benefits you have by receiving a closed school loan discharge?

user: Yes, go ahead.

assistant: You can have several advantages by receiving a closed school loan discharge.

user: What if I initially enrolled in a program, but decided not to continue with that program and transferred to another?

assistant: If you were then unable to complete the second program because the school closed, only loans you received for the second program could potentially be discharged.

user: Can I still get a discharge of the loans if my school closes down and I enroll in a similar program at another school?

assistant: Well, it depends.

user: Let's be more specific then. What if I completed a similar program through a teach-out?

assistant: In that case, by transferring academic credits or hours from the closed school, or by any other comparable means, you are not eligible for a closed school discharge.

user: Could I still be eligible for a discharge somehow?

assistant: Yes, you may be eligible for discharge if you completed or are in the process of completing a comparable program at another school.