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