Federal Student Loan Forgiveness Program

Closed School Discharge

If your college or university closed while you were enrolled or shortly after you withdrew, you may qualify for 100% discharge of your federal student loans through this Department of Education program.

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What Is Closed School Discharge?

The Closed School Discharge program is a federal student loan forgiveness option administered by the U.S. Department of Education. It provides 100% discharge of federal student loans for borrowers whose school closed while they were enrolled or within a specific window after they withdrew.

School Closure

The Department of Education recognizes that when a school closes unexpectedly, students are left without the education they paid for. This program ensures you aren't burdened with loans for an incomplete education.

Time Windows

You may qualify if your school closed while you were enrolled, or within 120 days (or 180 days in some cases) of your withdrawal. The key factor is that the closure prevented you from completing your program.

100% Discharge

If approved, you receive complete discharge of the federal student loans you took out for the closed school program. You may also receive a refund of payments you already made on those loans.

Federal Protection

This is a legally established federal program — not a settlement or negotiation. If you meet the Department of Education's criteria, you are entitled to this discharge by law.

Who Qualifies

Your school closed while you were enrolled in a program

Your school closed within 120 days of your withdrawal

For certain closures, the window extends to 180 days

The closure prevented you from completing your program

You did not complete a comparable program at another school through a teach-out agreement or transfer

Your loans are federal (Direct Loans, FFEL, or Perkins Loans)

Program Benefits

100% discharge of federal student loans for the closed school program

Refund of all payments previously made on the discharged loans

Removal of loan entries from your credit report

No application fee to file for discharge

No federal income tax on the discharged amount under current law

You regain eligibility for federal student aid if you wish to return to school

Important: Automatic vs. Application-Based Discharges

In some cases, the Department of Education may automatically discharge loans for affected students when a school closes. However, automatic discharges are not guaranteed and may take years. Filing your own application ensures your case is actively processed and that you receive any refunds you are entitled to as quickly as possible.

Our team handles the entire application process — verifying the closure date, confirming your eligibility window, preparing the required documentation, and submitting your application directly to the Department of Education. We also monitor the status and follow up to ensure timely processing.

Did Your School Close? Let Us Help.

Don't wait for an automatic discharge that may never come. Schedule your free assessment today and let our experts determine your eligibility and handle your application from start to finish.

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