* Type of loan: Federal student loans have different forgiveness options than private student loans. Federal loans are more likely to offer relief in these situations.
* Reason for closure: If the school closed due to fraud or misrepresentation (e.g., they were operating illegally or defrauded students), you might be eligible for a discharge of your federal student loans through the Borrower Defense to Repayment program. This program requires submitting a detailed application.
* Timing of closure: If you were enrolled when the school closed, or if you withdrew shortly before the closure, you may have different options than if you graduated some time before the closure.
* Accreditations: The school's accreditation status at the time of enrollment and closure plays a role. A loss of accreditation can impact eligibility for discharge.
What to do if your school closes:
1. Contact the Department of Education (if you have federal loans): This is crucial. They can provide information specific to your situation and guide you through the process of applying for loan discharge if eligible.
2. Contact your loan servicer(s): Understand your repayment options and explore any potential forbearance or deferment programs.
3. Gather documentation: Collect any paperwork related to your enrollment, the school's closure, and your student loans. This will be needed for any applications for loan discharge.
4. Consider seeking legal advice: Navigating the loan discharge process can be complicated. An attorney specializing in student loan issues can offer valuable assistance.
In short, while closure of your school doesn't automatically forgive your loans, it *could* lead to forgiveness under specific circumstances. You need to actively pursue your options by contacting the relevant authorities and gathering the necessary documentation.