Who qualifies for discharge due to school closure?
If you received a Federal Perkins Loan Direct Loan or FFEL Program Loan on or after January 1, 1986, you may qualify for a Closed School discharge if you (or the student for whom a parent received a PLUS loan) could not complete the program of study for which the loan was intended because the school at which you (or student) were enrolled, closed while you were in attendance, or you (or student) withdrew from the school, or were on an approved leave of absence, not more than 90 days prior to the date the school closed. You must not have completed the program of study through a teach-out at another school or by transferring academic credits or hours earned at the closed school to another school. If your loan is discharged, you will not owe any more payments on the loan, and you will get a refund of payments you made in the past. Also, if the loan is discharged, the servicing agency will tell credit reporting agencies that the loan was discharged, and any adverse credit history resulting
