My school closed and now I can’t graduate. What happens to my student loans?
If you accept a “teach-out” to complete your program at your school or another school, you will be responsible for repaying all of your student loans.
When you’re told that your college will be shutting down, there can be a lot of uncertainty about what comes next. Here is some helpful advice to help you navigate the situation.
- If you accept a “teach-out” to complete your program at your school or another school, you will be responsible for repaying your student loans.
- If you decline a “teach-out” offer and the school closes, you may not have to pay back your federal student loans by . Generally, borrowers with private student loans will still be responsible for repaying their private student loans. Some states may have programs that assist students with private student loans in the event of a school closure. Some private student lenders may offer options to assist certain borrowers in this situation. You will have to contact your lender to determine if you are eligible to have your private student loans discharged based on your school closing.
- If you later enroll in a similar program at another school and receive credit for courses you already completed, you may still need to pay back your federal loans if you transfer credits or hours from the closed school or participate in the “teach out.” If you did not participate in a “teach out,” or transfer credit or hours from the closed school and otherwise meet the requirements for a closed school discharge, your loans may be forgiven. Contact the for more information.
TIP: If you think you won’t be able to afford to repay your private student loan, you should contact your student loan servicer immediately to learn more about your options. And if you run into trouble, you can also submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372).