Students experience significant disruption and overwhelmingly poor outcomes after a college closure. The Higher Education Act empowers the Department of Education (ED) to grant federal student loan discharges to borrowers when their college closes. Closed school discharge provides an important pathway to relief for students who were unable to complete their programs because of a closure. Students who receive closed school discharges are freed from their repayment obligations, receive reimbursement for previous payments, and have all records of their loans—including any adverse history—erased from their credit reports.
Read the fact sheet below to learn more about the importance of closed school discharge.
