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LearnFAQDebt Management

Can I get my student loans discharged if my school closed or defrauded me?

Answer

Yes. A closed-school discharge cancels federal loans if your school shut down while you were enrolled or shortly after you withdrew, and you did not complete the program elsewhere. Borrower defense to repayment can discharge loans if your school misled you or engaged in certain misconduct, though the program's rules have been contested in court and processing is slow. There is also total and permanent disability discharge and, for the estate, death discharge. According to the Department of Education, these federal discharges are separate from bankruptcy and generally do not require you to prove undue hardship. Apply through studentaid.gov and keep documentation such as enrollment records and any recruiting materials.

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