CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

My College Closed: Do I Need to Repay My Student Loans?

School Closed And Student Loans.Though it might not happen to the world’s most famous universities, there are some colleges that go out of business. They might be purchased by another school or simply close their doors because of their own financial issues or other reasons.

The most frequent colleges to go out of business are career training schools that focus on a particular industry. For instance, in recent years, some information technology schools have closed their doors or been bought out by other schools.

If your college closes, you might be wondering if your student loan will be affected and whether you are still on the hook for what you owe if the school suddenly goes out of business without warning.

Student Loans Might Not Be Discharged in Bankruptcy

In most cases, student loan debt is not discharged in a bankruptcy. There are exceptions, of course, but in general, you should assume that any money you borrow to attend a college or any higher learning institution will be your debt until it is paid off.

However, if you fall into the category of those who attended a college that has now gone out of business, there is a chance your debt will be forgiven through something known as “closed school discharge.” Some students can have their student loans discharged in these circumstances.

In order to qualify for discharge of Direct Loans, Federal Family Education Loans (FEEL), or Federal Perkins Loans because of a college closing, the school:

  • Must close while you’re enrolled and affect your ability to complete the program or…
  • Must close within 120 days after your withdraw

If you’ve been withdrawn for more than 120 days, you are completing a comparable program at another school, or you’ve completed the coursework at the closed school, even if you earned no diploma or certificate, you are not eligible for discharge of the loan.

Basically, you need to be a current student or recent graduate to qualify to have your loan discharged.

If you’re unsure if you qualify for discharge of a student loan you used to attend a school that closed, the Department of Education has additional information, as well as a list of schools that have recently closed whose students may be eligible for loan forgiveness. You can check out their website here.

Is My Student Loan Eligible for Forgiveness?

In addition to a college closing, there might be other reasons your loan is eligible for forgiveness. There are instances in which bankruptcy courts have discharged student loans and if you believe you might be an exception to the rule, it’s important to speak to a bankruptcy attorney. Even if your student loan is not forgiven, bankruptcy might still be a tool that can help you organize your finances and make student loan debt easier to manage.

Student loan debt is one of the primary reasons people opt for bankruptcy, especially in recent years. If you are struggling to make ends meet and cannot meet your student loan obligations, you are not alone.

If you have questions about student loan debt or you are concerned about your situation and not sure where to turn, we can help. Contact the Law Office of Robert M. Geller at 813.254.5696 to learn more or to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can I File for Bankruptcy Without a Job?

Bankruptcy is often considered a tool used by people without money, without income, and without any financial hope. The truth...
Read More

Should I Use Retirement Savings to Avoid Bankruptcy? A Tampa Bankruptcy Lawyer Can Help You Protect Your Retirement Nest Egg

Withdrawing money from your retirement savings is rarely advised by financial experts, even if you are facing bankruptcy. Working with...
Read More

Can You File for Bankruptcy and Keep Your Home

Foreclosure is something that occurs after a homeowner has missed multiple mortgage payments. Working with a Florida bankruptcy attorney helps...
Read More

Is There Such a Thing as Mortgage Bankruptcy?

Your home is one of your primary concerns when filing for bankruptcy. Can you claim bankruptcy and keep your home?...
Read More

What Do You Need to Know about a Home Auction in Bankruptcy?

Home auctions are a common topic that arises when someone is faced with the prospect of bankruptcy. Bankruptcy protection for...
Read More

Can a Florida Bankruptcy Attorney Help Me Avoid Eviction

Losing one’s home is one of the most common concerns you can have when filing for bankruptcy. A Florida bankruptcy...
Read More

Covid-19 Tax Tips

The COVID-19 pandemic has affected a variety of things including taxes. These COVID tax tips can help you prepare and...
Read More

How Can a Bankruptcy Attorney in Tampa Florida Help Me If I Fall Behind on My Mortgage After Filing for Bankruptcy?

Many people find that filing for bankruptcy provides all of the financial relief they need to get back on track....
Read More

Are Bankruptcy Laws Designed to “Trip” You Up? Here’s How a Bankruptcy Law Firm Can Help You Avoid Trouble

It’s no surprise that people are skeptical of how bankruptcy can help their financial situation. Many have heard stories about...
Read More

What is a Discharge and What Does It Stop?

The primary benefit of bankruptcy is the discharge. Filing for Chapter 7 bankruptcy results in the elimination of your legal...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions