Closed School

You may be eligible to have your loan discharged, if you did not complete the program of study and either of the following is true:

  • the school closed while you were attending, or
  • the school closed within ninety days after you withdrew from the school

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 from nonpayment of the discharged loan will be deleted. In addition, your discharged loan will not prevent you from applying for additional federal student financial aid.

If you believe that a school you attended may have closed, you may be able to use the Closed School Database to confirm this and to determine the date the school closed. Please note that the closed school list includes only schools that at one time participated in the federal student aid programs administered by the U.S. Department of Education. A closed school that never participated in the programs administered by the Department will not be on this database.

Please visit our Closed School Information section for more information on this topic.

What to Do:

You must complete and submit a closed school discharge application form. You can request this form from the agency that holds your loan, or you can download it now. Check a recent demand letter or bill for this loan; if the address to which you are requested to send payment is the National Payment Center in Atlanta, GA, you should submit your completed form to:

U.S. Department of Education
P.O. Box 5609
Greenville, TX 75403-4145

You may request a copy of this discharge application form by calling
1-800-621-3115 (TTY: 1-877-825-9923).