Closed School Discharge Application

CLOSED SCHOOL DISCHARGE APPLICATION

OVERVIEW

If your school closed while you were enrolled or shortly after you withdrew, you may be eligible to have your federal student loans discharged. This means you would no longer have to repay those loans.

IMPORTANT UPDATE: The One Big Beautiful Bill Act (July 2025) delays implementation of the 2022 closed school discharge regulations until July 1, 2035. The earlier, more restrictive rules remain in effect for most borrowers.

SECTION 1: APPLICANT INFORMATION

Full Legal Name: _______________________________________________

Former Names (if any): _______________________________________________

Date of Birth: _______________________________________________

Social Security Number (Last 4 Digits): XXX-XX-____________

Current Mailing Address:
_______________________________________________
_______________________________________________
City: _________________ State: _______ ZIP: ___________

Phone Number: _______________________________________________

Email Address: _______________________________________________

Federal Student Aid ID (FSA ID): _______________________________________________

SECTION 2: LOAN INFORMATION

Current Loan Servicer: _______________________________________________

Account Number: _______________________________________________

Total Outstanding Balance for Loans at Closed School: $_______________

Loan Types (Check all that apply):

☐ Direct Subsidized Loans
☐ Direct Unsubsidized Loans
☐ Direct PLUS Loans (Graduate/Professional)
☐ Direct PLUS Loans (Parent)
☐ Direct Consolidation Loans
☐ FFEL Stafford Loans (Subsidized)
☐ FFEL Stafford Loans (Unsubsidized)
☐ FFEL PLUS Loans
☐ FFEL Consolidation Loans
☐ Federal Perkins Loans

SECTION 3: SCHOOL CLOSURE INFORMATION

Name of Closed School: _______________________________________________

School Campus/Location: _______________________________________________

School Address:
_______________________________________________
_______________________________________________

School OPE ID (if known): _______________________________________________

Date School Closed: _______________________________________________

Program of Study: _______________________________________________

Credential Sought:
☐ Certificate/Diploma
☐ Associate's Degree
☐ Bachelor's Degree
☐ Master's Degree
☐ Doctorate/Professional Degree

SECTION 4: ENROLLMENT STATUS AT TIME OF CLOSURE

Your Enrollment Dates:

Date Enrollment Began: _______________________________________________

Last Date of Attendance: _______________________________________________

At the time of closure, were you:

☐ Enrolled at the school - I was actively attending classes when the school closed

☐ On an approved leave of absence - I was on an official leave of absence when the school closed
- Leave of Absence Start Date: _______________________________________________
- Expected Return Date: _______________________________________________

☐ Recently withdrawn - I withdrew from the school before it closed
- Withdrawal Date: _______________________________________________
- Number of Days Between Withdrawal and Closure: _______________

SECTION 5: ELIGIBILITY DETERMINATION

Automatic Discharge Eligibility

You may qualify for AUTOMATIC discharge if:

☐ Your school closed on or after July 1, 2023
☐ You were enrolled at the time of closure (or on approved leave of absence)
☐ You did not complete your program
☐ You did not enroll in a teach-out program at another school within one year of closure

If you meet all the above criteria, your loans should be automatically discharged within one year of closure. However, you may still need to submit this application to expedite the process.

Application-Based Discharge Eligibility

You must apply for discharge if:

☐ Your school closed before July 1, 2023
☐ You withdrew within 180 days before the school closed (120 days for closures before July 1, 2020)
☐ You want to receive discharge before the automatic one-year waiting period

SECTION 6: DISQUALIFYING FACTORS REVIEW

Answer the following questions to determine if you may be disqualified from closed school discharge:

Program Completion

Did you complete your program of study at the closed school?
☐ Yes - You may NOT be eligible for closed school discharge
☐ No

Teach-Out Agreement

Did you complete your program through a teach-out agreement at another school?
☐ Yes - You may NOT be eligible for closed school discharge
☐ No
☐ I was offered a teach-out but declined

If you declined a teach-out, explain why:
_______________________________________________
_______________________________________________

Transfer of Credits

Did you transfer credits from the closed school to a comparable program at another school?
☐ Yes - This may affect your eligibility
☐ No

If yes, provide details:
- Name of school where credits transferred: _______________________________________________
- Number of credits transferred: _______________
- Was the new program comparable to your program at the closed school? ☐ Yes ☐ No

IMPORTANT NOTE: Under current regulations, if you transferred even one credit from your closed school into a "comparable program," you may not be eligible for discharge of loans for that period of enrollment.

Enrollment at Another Campus

Did you complete your program at another campus of the same school?
☐ Yes - You may NOT be eligible for closed school discharge
☐ No
☐ Not applicable - no other campus available

SECTION 7: EFFORTS TO COMPLETE EDUCATION

After the school closed, did you:

☐ Enroll in another program to complete your education
- School Name: _______________________________________________
- Program: _______________________________________________
- Did you complete this program? ☐ Yes ☐ No

☐ Attempt to transfer credits to another school
- Were credits accepted? ☐ Yes ☐ No ☐ Partially

☐ Not pursue further education related to this program

Explain any efforts you made to continue your education after closure:
_______________________________________________
_______________________________________________
_______________________________________________

SECTION 8: NOTICE OF SCHOOL CLOSURE

How did you learn that your school closed?

☐ Official notice from the school
☐ Notice from the Department of Education
☐ News media reports
☐ Discovered school was closed when trying to attend
☐ Other: _______________________________________________

Date you learned of the closure: _______________________________________________

Did the school provide you with:

☐ Information about teach-out options
☐ Information about transferring credits
☐ Information about loan discharge options
☐ Refund of tuition or fees
☐ Academic transcripts
☐ None of the above

SECTION 9: DOCUMENTATION CHECKLIST

Attach the following documentation with your application:

Required Documents:

☐ Government-issued photo identification
☐ Proof of enrollment (if available):
- Enrollment agreement
- Class schedules
- Student ID card
- Receipts for tuition payment
☐ Proof of last date of attendance (if available)

Supporting Documents (if available):

☐ Academic transcripts
☐ School catalog from your period of enrollment
☐ Correspondence from the school about closure
☐ Teach-out agreement (if offered but declined)
☐ Documentation of any credits transferred
☐ News articles about the school closure

If Applicable:

☐ Documentation of approved leave of absence
☐ Withdrawal documentation
☐ Documentation showing you did not complete a comparable program

SECTION 10: FORBEARANCE REQUEST

Do you want your loans to be placed in forbearance while your application is processed?

☐ Yes, I request forbearance during the review of my application
☐ No, I will continue making payments

Note: If you are granted forbearance, you are not required to make payments. However, interest may continue to accrue during forbearance. If your application is denied, any accrued interest may capitalize.

SECTION 11: REFUND REQUEST

If your closed school discharge is approved:

☐ I request a refund of any payments I made on loans disbursed for enrollment at the closed school

☐ I request a refund of amounts collected through wage garnishment related to these loans

☐ I request a refund of tax refunds seized through Treasury offset related to these loans

Estimated total payments made on these loans: $_______________

STATE-SPECIFIC NOTES

California (CA)

• California maintains an extensive database of closed schools through the Bureau for Private Postsecondary Education (BPPE)
• California Student Aid Commission may provide additional assistance
• Contact DFPI for servicer-related issues
• California law may provide additional consumer protections

Texas (TX)

• Texas Higher Education Coordinating Board (THECB) maintains records of closed schools
• Texas Workforce Commission (TWC) oversees career schools and colleges
• Contact the Office of Attorney General Consumer Protection Division
• Recent litigation from Texas has affected closed school discharge regulations nationwide

Florida (FL)

• Florida Commission for Independent Education maintains closure records
• Office of Student Financial Assistance may provide resources
• Florida Office of Financial Regulation handles servicer complaints

New York (NY)

• New York State Education Department maintains closure records
• HESC (Higher Education Services Corporation) may assist NY residents
• Attorney General's Office has active student protection efforts
• NY has some of the strongest student loan borrower protections

SECTION 12: CERTIFICATION AND SIGNATURE

I certify under penalty of perjury that:

☐ The school named in this application closed while I was enrolled or within the applicable period after I withdrew

☐ I did not complete my program of study at the closed school

☐ I did not complete a comparable program at another school through a teach-out agreement

☐ All information provided in this application is true, complete, and accurate to the best of my knowledge

☐ I understand that I may be required to provide additional documentation to support my application

☐ I understand that if my application is approved, I am entitled to a refund of amounts paid on the discharged loans

☐ I understand that the discharged loan amount may have tax implications

☐ I understand that providing false information may result in criminal penalties and/or civil liability

Applicant Signature: _______________________________________________

Date: _______________________________________________

Print Name: _______________________________________________

SUBMISSION INSTRUCTIONS

Online Submission (Recommended):

1. Log in to StudentAid.gov
2. Navigate to the Loan Discharge section
3. Select "Closed School Discharge"
4. Complete the online application
5. Upload supporting documents

Mail Submission:

Send completed application to your loan servicer:

Servicer Name: _______________________________________________
Servicer Address: _______________________________________________

If you don't know your servicer, contact:
- StudentAid.gov (check "My Loan Servicers")
- Federal Student Aid Information Center: 1-800-433-3243

Fax Submission:

Fax to your loan servicer (obtain fax number from servicer's website or customer service)

PROCESSING TIMELINE

WHAT HAPPENS AFTER APPROVAL

1. Loan Balance Discharged: Your remaining loan balance for the closed school period will be forgiven

2. Payments Refunded: You will receive a refund of any payments made on the discharged loans

3. Collections Stopped: Any collection activity will cease

4. Credit Report Updated: The loan will be removed from your credit report, and any negative information will be deleted

5. Tax Implications: Through December 31, 2025, the discharged amount is not taxable income under federal law

IF YOUR APPLICATION IS DENIED

If your closed school discharge application is denied, you will receive written notification explaining the reason. Options include:

1. Request Reconsideration

• Submit within 30 days of denial
• Provide additional documentation addressing the denial reason
• Explain any special circumstances

2. Appeal

• Follow the appeal process outlined in your denial letter
• Consider seeking legal assistance

3. Alternative Relief

• You may still qualify for other forms of relief:
• Borrower Defense to Repayment
• Income-Driven Repayment
• Forbearance or Deferment

4. File Complaints

• Consumer Financial Protection Bureau (CFPB)
• Federal Student Aid Ombudsman
• State Attorney General
• State education licensing agency

FREQUENTLY ASKED QUESTIONS

Q: What if I can't prove I was enrolled?
A: The Department of Education has access to enrollment records through the National Student Loan Data System (NSLDS). If you don't have documentation, explain this in your application.

Q: What if I withdrew more than 180 days before closure?
A: You may not be eligible for closed school discharge, but you might qualify for Borrower Defense to Repayment if the school engaged in misconduct.

Q: What if I consolidated my loans?
A: You may still be eligible. The portion of your consolidation loan that represents loans from the closed school may be dischargeable.

Q: Will closed school discharge affect my ability to get student loans in the future?
A: No. You remain eligible for federal student aid after receiving a closed school discharge.

RESOURCES

• StudentAid.gov - Federal Student Aid official website
• CFPB.gov - Consumer Financial Protection Bureau
• StudentLoanBorrowerAssistance.org - National Consumer Law Center
• Your State Attorney General - Consumer protection assistance
• Federal Student Aid Information Center - 1-800-433-3243

This template was last updated on 2026-01-25 and reflects current regulations. The 2022 expanded closed school discharge regulations have been delayed until July 1, 2035 under the One Big Beautiful Bill Act. For the most current information, visit StudentAid.gov or consult with a qualified attorney.