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ECFR 214 Closed School Discharge
Qualifying Loan Types
- Direct Loans
Qualifying Origination Dates
- Loans disbursed in whole or in part, on or after January 1, 1986
Requirements
- Loans first disbursed before July 1, 2020
Borrower must submit a written request and sworn statement; the factual assertions in the statement must be true under penalty of Perjury.
- Loans first disbursed after July 1, 2020.
Borrower must submit a completed application; the factual assertions in the application must be true and made under penalty of perjury
Qualifications
- For Paragraph A above:
- State that the borrower (or the student on whose behalf a parent borrowed) received the proceeds of a loan, in whole or in part, on or after January 1, 1986 (but before July 1, 2020) to attend a school;
- Did not complete the program of study at that school because the school closed while the student was enrolled, or the student withdrew from the school not more than 120 days before the school closed.
- Did not complete the program of study at another school, or by transferring academic credits hours earned from the closed school to another school
- For Paragraph B above:
- Certify that the borrower (or the student on whose behalf a parent borrowed) received the proceeds of a loan, in whole or in part, on or after July 1, 2020, to attend a school.
- Did not complete the program of study at that school because the school closed on the date that the student was enrolled, or the student withdrew from the school not more than 180 calendar days before the date that the school closed.
- Did not complete the program of study at another school, or by transferring academic credits hours earned from the closed school to another school
In order to obtain a discharge, a borrower must agree to cooperate or provide testimony on behalf of the Secretary in any lawsuits or litigation filed to recover amounts discharged.
Borrower agrees to transfer to the Secretary all rights of recovery against third parties for the discharged loans.