Closed-school student loan discharge is a cancellation program for students who were enrolled in or recently withdrew from a school that shut down. Qualifying for discharge means you won’t have to pay for loans you took out to attend that school.
It’s only available for federal loans, though some private providers might also discharge your loans separately if your school shuts down.
You might be eligible for student loan discharge if you meet the following requirements for student loans and enrollment:
| Eligible student loans | The following types of federal student loans are eligible for closed-school discharge:
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|---|---|
| Eligible enrollment | To qualify for closed-school discharge, you must meet one of the following criteria:
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Not sure if your school qualifies for closed-school discharge? Check this list to find out if yours does:
Follow these steps to apply for closed-school student loan discharge:
Find your student loan servicer by checking your student loan statement — your servicer is the company that handles your repayments.
Still unsure? You can use the Federal Student Loan (FSA) ID you created when you filled out the FAFSA to log in to your account on the FSA website to find out who your servicer is.
Automatic closed-school discharge is when your loans are canceled three years after your school closes — even if you don’t apply. To qualify, you need to meet the following criteria:
If you meet all of these requirements, the DoE begins the automatic closed-school discharge process. When this happens, your servicer will let you know that your loans are about to be canceled.
Got your application form? Follow these steps to fill it out correctly.
Enter the following personal information in the required fields:
If any of this information has changed since you’ve last contacted your servicer, check the box at the top of the section.
Questions 1 through 22 provide information about your school and student loans.
Before signing the agreement, make sure your name and Social Security number are written clearly at the top of the second page of the application.
Read the certification, assignment and authorization before signing your name and writing the date.
Once you complete the form, fax or mail it to your student loan servicer. If you’re not sure where to send it, reach out to your servicer for the correct address or fax number.
Some servicers might also offer an online version that you can send electronically through their website.
Once you’re approved for closed student loan discharge, you no longer have to make repayments. And if your loan was in default, the discharge could erase the default status, improving your credit and making you eligible for more federal student aid.
If you have private or federal loans used to pay for another school, you’re still responsible for paying those off according to your repayment plan.
Contact to your student loan servicer to find out why. If you believe it was an error, ask if it’s possible to resubmit your application or provide additional documents.
Otherwise, you might want to consider alternative ways to reduce or cancel your student debt.
Applying for discharge isn’t the only way to cancel your student loans. You can also:
If you have loans that can’t be discharged but you want to change your repayments, you could consider refinancing.
Closed-school discharge is one of several ways to have your student loans canceled. If your school closes and you never attend a similar program, the Department of Education will automatically cancel your loans within three years. And it can potentially get your student loans out of default and repair your credit.
Find out more about how it all works with our guide to student loans.
What if my school offered me a teach-out program but I didn’t take it?
You can still qualify for closed-school student loan discharge if you reject a teach-out program. However, if you attend another similar program outside the teach-out offer, you won’t be eligible for cancellation.
Can I qualify for student loan discharge from ITT Tech?
Yes. If you’re a former ITT Tech student, you can apply for closed-school discharge through your student loan servicer.
Want to complete your degree? You can also apply to have your credits transferred to another program.
If you have state or private student loans, you might also be eligible for a refund from the State Tuition Recovery Fund. Eligibility varies by state.
Is there a Corinthian College student loan forgiveness program?
There is. You could qualify for closed-school student loan discharge if you attended a Corinthian school that closed on April 27, 2015. Otherwise, you might be able to apply for borrower defense to repayment student loan discharge if you believe Corinthian defrauded you or broke state law.
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