My school closed while I was enrolled and now I can’t graduate. What happens to my federal student loans?

Answer:

If you have federal student loans and are currently enrolled or recently left a college or university that has shut its doors, you may be able to discharge (cancel) your loans if you apply for a loan discharge.

This option is only a possibility if your school closes. If you are attending a school that is sold, you may not be eligible to ask for a discharge under this process, even if your school no longer offers your program of study. 

If you do have your federal loans discharged and you end up transferring credits to a similar program, you may have to pay back the loans that were discharged. 

Topics:
Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer