Closed School Loan Discharge Form
Closed School Loan Discharge Form
Closed School Loan Discharge Form
1845-0058
Form Approved
William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family
Exp. Date 08/31/2017
Education Loan (FFEL) Program, and Federal Perkins Loan Program
WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or on any
accompanying document is subject to penalties that may include fines, imprisonment, or both, under the U.S. Criminal
Code and 20 U.S.C. 1097.
SECTION 1: BORROWER IDENTIFICATION
Please enter or correct the following information.
Check this box if any of your information has changed.
SSN ___ ___ ___ - ___ ___ - ___ ___ ___ ___
Name ____________________________________
Address ____________________________________
City, State, Zip Code ____________________________________
Telephone – Primary ( _______ ) _______ - _____________
Telephone – Alternate ( _______ ) _______ - _____________
E-mail (optional) ____________________________________
SECTION 2: SCHOOL CLOSURE INFORMATION
1. You are applying for this loan discharge as a: 10. Were you (or, for a parent PLUS borrower, the
Student borrower – Skip to Item 4. student) still enrolled in the program of study
Parent borrower – Continue to Item 2. when the school closed?
2. Student Name (Last, First, MI): Yes – Skip to Item 13.
_________________________________________ No – Continue to Item 11.
3. Student SSN:
11. Did you (or, for a parent PLUS borrower, the
___ ___ ___ - ___ ___ - ___ ___ ___ ___
student) withdraw from the school before the
4. Closed School Name:
school closed?
_________________________________________
5. Closed School Address (street, city, state, zip): Yes – Continue to Item 12.
_________________________________________ No – Skip to Item 13.
_________________________________________ 12. On what date did you withdraw from the school?
6. Dates of attendance at the closed school: ___ ___ - ___ ___ - ___ ___ ___ ___
___ ___ - ___ ___ - ___ ___ ___ ___ to 13. Did you (or, for a parent PLUS borrower, the
___ ___ - ___ ___ - ___ ___ ___ ___ student) complete or are you in the process of
7. Name of the program you (or, for a parent PLUS completing the same or a comparable program of
borrower, the student) were enrolled in at the study at another school?
time the school closed:
_________________________________________ Yes – Continue to Item 14.
8. Did you (or, for a parent PLUS borrower, the No – Skip to Item 16.
student) complete the program of study at the 14. Are you (or, for a parent PLUS borrower, the
closed school? student) completing the new program through a
Yes – You are not eligible for this discharge. teach-out agreement (see Section 5)?
No – Continue to Item 9. Yes – You are not eligible for this discharge.
9. Were you (or for a parent PLUS borrower, the No – Continue to Item 15.
student) on an approved leave of absence when 15. Did the other school give you (or, for a parent
the school closed? PLUS borrower, the student) credit for training
Yes – Provide the dates of the leave of received at the closed school by allowing transfer
absence, then skip to Item 13: credits or hours earned at the closed school, or by
___ ___ - ___ ___ - ___ ___ ___ ___ to any other comparable means?
___ ___ - ___ ___ - ___ ___ ___ ___
Yes – You are not eligible for this discharge.
No – Continue to Item 10.
No – Continue to Item 16.
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Borrower Name: ______________________________ Borrower SSN: ___ ___ ___ - ___ ___ - ___ ___ ___ ___
SECTION 2: SCHOOL CLOSURE INFORMATION (CONTINUED)
16. Did the holder of your loan receive any money back (a 20. Provide the following about the party with whom the
refund) from the closed school on your behalf? claim was made or from whom payment was received:
Yes – Continue to Items 17– 19. a. Name: ___________________________________
No – Skip to Item 19. b. Address (street, city, state, zip code):
Don’t Know – Skip to Item 19. _________________________________________
17. What was the amount of the refund? _________________________________________
$___________________________________________ c. Telephone number:
18. Explain why the money was refunded: ( _______ ) _______ - _____________
____________________________________________ 21. What is the amount and the status of the claim?
____________________________________________ a. Amount: $________________________________
____________________________________________
b. Status:
19. Did you (or, for a parent PLUS borrower, the student) _________________________________________
make any monetary claim with, or receive any _________________________________________
payment from, the closed school or any third party _________________________________________
(see definition in Section 5) in connection with
enrollment or attendance at the school? 22. What was the amount of any payment received? If
none, write “none”.
Yes – Continue to Items 20 – 22.
$___________________________________________
No – Sign and date the form in Section 3. Submit
the form to the loan holder in Section 7. Sign and date the form in Section 3. Submit the form to
Don’t Know – Sign and date the form in Section 3. the loan holder in Section 7.
Submit the form to the loan holder in Section 7.
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SECTION 4: INSTRUCTIONS FOR COMPLETING THE FORM
When completing this form, type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Use only
numbers. Example: March 14, 2014 = 03-14-2014. If you need more space to answer any of the items, continue on
separate sheets of paper and attach them to this form. Indicate the number of the Item(s) you are answering and
include your name and Social Security Number (SSN) on the top of page 2 and on all attached pages. Return the
completed form and any attachments to the address shown in Section 7.
SECTION 5: DEFINITIONS
§ The William D. Ford Federal Direct Loan (Direct Loan) § Loan discharge due to school closure cancels your
Program includes Federal Direct Stafford/Ford (Direct obligation (and any endorser’s obligation, if applicable)
Subsidized) Loans, Federal Direct Unsubsidized to repay the remaining portion on a Direct Loan, FFEL,
Stafford/Ford (Direct Unsubsidized) Loans, Federal or Perkins Program loan, and qualifies you for
Direct PLUS (Direct PLUS) Loans, and Federal Direct reimbursement of any amounts paid voluntarily or
Consolidation (Direct Consolidation) Loans. through forced collection on the loan. For
§ The Federal Family Education Loan (FFEL) Program consolidation loans, only the amount of the underlying
includes Federal Stafford Loans (both subsidized and loans that were used to pay for the program of study
unsubsidized), Federal Supplemental Loans for listed in Section 2 will be considered for discharge. The
Students (SLS), Federal PLUS Loans, and Federal loan holder reports the discharge to all credit reporting
Consolidation Loans. agencies to which the holder previously reported the
§ The Federal Perkins Loan (Perkins Loan) Program status of the loan and removes any adverse credit
includes Federal Perkins Loans, National Direct Student history previously associated with the loan.
Loans (NDSL), and National Defense Student Loans § The student refers to the student for whom a parent
(Defense Loans). borrower obtained a Direct PLUS Loan or Federal PLUS
§ The date a school closed is the date that the school Loan.
stopped providing educational instruction in all § Program of study means the instructional program
programs as determined by the Department. leading to a degree or certificate in which you (or, for
§ Dates of attendance: The “to” date means the last parent PLUS borrowers, the student) were enrolled.
date that you (or, for a parent PLUS borrower, the § School means the school’s main campus, or any
student) actually attended the closed school. location or branch of the main campus.
§ The holder of your Direct Loan Program loan(s) is the § Teach-out agreement means a written agreement
Department. The holder of your FFEL Program loan(s) between schools that provides for the equitable
may be a lender, a guaranty agency, or the treatment of students and a reasonable opportunity
Department. The holder of your Perkins Loan Program for students to complete their program of study if a
loans may be a school or the Department. Your loan school ceases to operate before all students have
holder may use a servicer to handle billing and other completed their program of study.
communications related to your loans. References to § Third party refers to any entity that may provide
“your loan holder” on this form mean either your loan reimbursement for a refund owed by the closed
holder or your servicer. school, such as a State or other entity offering a tuition
recovery program or a holder of a performance bond.
SECTION 6: TERMS AND CONDITIONS FOR LOAN DISCHARGE BASED ON SCHOOL CLOSURE
§ You are only eligible for this form of discharge if you § If you withdrew more than 120 days before the school
received the loan on which you are requesting closed, you may be eligible for this form of discharge if
discharge on or after January 1, 1986. the Department determines that exceptional
§ You are only eligible for this form of discharge if the circumstances related to the school’s closing justify an
location or campus that you were attending closed. If extension of this 120-day period. Examples of
you were taking distance education classes, you are exceptional circumstances include, but are not limited
only eligible for discharge if the main campus of your to: (1) the closed school’s loss of accreditation; (2) the
school closed. closed school’s discontinuation of the majority of its
§ You must have been enrolled at the closed school or on academic programs; (3) action by the State to revoke
an approved leave of absence on the date that the the closed school’s license to operate or award
school closed, or withdrawn from the school not more academic credentials in the State; or (4) a finding by a
than 120 days before it closed to be eligible for this State or Federal government agency that the closed
form of discharge. school violated State or Federal law.
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SECTION 6: TERMS AND CONDITIONS FOR LOAN DISCHARGE BASED ON SCHOOL CLOSURE (CONTINUED)
§ By signing this form, you are agreeing to provide, upon § By signing this form, you are agreeing to cooperate
request, testimony, a sworn statement, or other with the Department or the Department’s designee in
documentation reasonably available to you that any enforcement action related to this application.
demonstrates to the satisfaction of the Department or § This application may be denied, or your discharge may
its designee that you meet the qualifications for loan be revoked, if you fail to provide testimony, a sworn
discharge based on school closure, or that supports any statement, or documentation upon request, or if you
representation that you made on this form or any provide testimony, a sworn statement, or
accompanying documents. documentation that does not support the material
representation that you made on this form or on any
accompanying documents.
SECTION 7: WHERE TO SEND THE COMPLETED FORM
Return the completed form and any required If you need help completing this form, call:
documentation to: (If no telephone number is shown, call your loan
(If no address is shown, return to your loan holder.) holder.)
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