What if you are attending a school for a particular degree or certification, you got federal student loans to pay for it, and the school closes before you get your degree or certification? Do you still have to pay back the loan?
Maybe not, according to the U.S. Department of Education. You may be eligible for discharge of your Direct Loans and FFEL Program loans under either of these two circumstances:
- Your school closes while you are enrolled, and you do not complete your program because of the closure. This is the case even if you were on an approved leave of absence; you are still considered to have been enrolled at the school.
- Your school closes within 90 days after you withdraw.
Bear in mind, though, that if you complete a comparable educational program at another school, you you may not be able to get it discharged. Find out more!