If my school closes while I am attending, can I have my federal student loans cancelled?

Yes.

Generally, you may be eligible for a "closed school discharge" or cancellation of your federal student loans if either:

  • Your school closes while you're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school, or
  • Your school closes within 120 days after you withdraw.

There are certain other reasons why federal student loans may be forgiven or discharged. For more information, go to Federal Student Aid, an Office of the U.S. Department of Education, or Student Loan Borrower Assistance SLBA.