Closed School Discharge

In certain instances, the closure of your school may result in a discharge, or release of your obligation to repay your student loan. Here's what you need to know.

You are eligible for a discharge if:

  • Your school closes while you are enrolled and you're unable to complete your program as a result. Note that if you were on an approved leave of absence at the time of the closure, you are considered to have been enrolled.
  • Your school closes within 120 days after you withdraw.

You are not eligible for a discharge if:

  • You withdraw more than 120 days before the school closes.
  • You are completing a comparable educational program at another school (through a teach-out agreement, a transfer or any other comparable means).
  • You have completed all the coursework for the program, even if you have not received a degree, diploma or certificate.

How to apply for a Closed School Discharge

If the school you attended recently closed and you believe you may be eligible for a closed school discharge, please contact MOHELA to learn about the Closed School Discharge application process.


Additional Information

For further information, including a comprehensive Q&A about Closed School Discharges, visit the Office of Federal Student Aid website.