Closed School Discharge of Federal Student Loans

The world of student loans had several big changes become effective July 1st. In uncanny timing, one of the changes applies to the closed school discharge, which could affect thousands of students because of the recent announcement that Corinthian College Inc. will be selling and closing the majority of its campuses.

The world of student loans had several big changes become effective July 1st. In uncanny timing, one of the changes applies to the closed school discharge, which could affect thousands of students because of the recent announcement that Corinthian College Inc. will be selling and closing the majority of its campuses.

The world of student loans had several big changes become effective on July 1^st. In uncanny timing, one of the changes applies to the closed school discharge, which could affect thousands of students because of the recent announcement that Corinthian College Inc. will be selling and closing the majority of its campuses.

Although the U.S. Department of Education and Corinthian College were able to work out an agreement regarding its winding down, some schools close their doors with no notice. When this happens, the students are the victims, especially if they are left holding student loans.

The change impacting the closed school discharge serves to provide some protections for students with federal student loans. You may qualify to have your student loans discharged if your school closes while you are enrolled and you are unable to complete the program of study for which the loan was intended. Prior to July 1^st, you must have been attending school within 90 days of the closure date (or you were on an approved leave of absence). The change in the law now extends that time frame to 120 days of the school closure date.

If you believe you may be eligible for the closed school discharge of your federal student loans, let us help. We can discuss your options and implement the process to ensure that you obtain the relief available to you.

Please keep in mind that every matter is different. If you have questions about your student loan debt and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at 954-466-0541.

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Closed School Discharge of Federal Student Loans

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List of Non-Dischargeable Debts in Bankruptcy

Having Financial Stress? 9 Things to Avoid

Defaulted Federal Student Loans – Consolidation and Other Options

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