When a College Closes: Student Loans and Your Records

A school closure can interrupt an education without automatically resolving the loans that paid for it. Before agreeing to another program or assuming the debt is canceled, gather enrollment records, loan details, and the school's notices. The type of loan and your individual circumstances determine which options need to be checked with the responsible agency or lender.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

My school closed and now I can’t graduate. What happens to my student loans?

If a college or university closes, a teach-out, transfer, and closed school discharge can have different consequences for your loans. Verify eligibility before accepting a new arrangement or assuming that your existing debt will be canceled.

If the college you’re enrolled in shuts down, there can be a lot of uncertainty about what comes next. If your school announced that it is closing, they may offer you a “teach out ” to complete your program and receive your degree or certificate.

• If you accept a “teach-out” to complete your program at your school or another school, you will be responsible for repaying your student loans.
• If you decline a teach-out offer and the school closes, you may qualify for a discharge of eligible federal loans. The requirements and any automatic discharge process depend on the applicable rules and your circumstances. Do not assume cancellation will happen on a fixed schedule. Check Federal Student Aid's closed school discharge guidance and ask your servicer how to apply and how payments are handled while an application is reviewed. Private student loans have separate terms; ask the lender and your state education agency whether assistance or discharge is available.
• If you later enroll in a similar program at another school and receive credit for courses you already completed, you may still need to pay back your federal loans if you transfer credits or hours from the closed school or participate in the “teach out.” If you did not participate in a “teach out,” and otherwise meet the requirements for a closed school discharge, your loans may be forgiven. Contact the Department of Education for more information.

If you can’t afford to repay your private student loan, you can contact your student loan servicer immediately to learn about your options. And if you run into trouble with your student loan servicer, you can submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372).

How do I find out information about my student loans?

For federal student loans, you can find information through the U.S. Department of Education. For private student loans, you can contact your student loan servicer.

Federal Student Loans

The definitive source for information on your federal student loans is the U.S. Department of Education’s Federal Student Aid website. Your student loan servicer, to whom you send your regular payments, should also have important information about your loan. You can find out who your federal student loan servicer is by logging into your Federal Student Aid account.

Private Student Loans

Unlike federal student loans, there is not a single website that contains information about all your private student loans. The lender or servicer for each of your loans should provide you with information on how, when, and to whom to pay. This can come in the form of a monthly email, or a billing statement sent to you by mail each month. Some lenders provide a “welcome kit” or phone call when a borrower enters repayment.

To find information on your private student loans, contact each of your private student loan servicers to determine your total loan balance. The current noteholder, if different from the servicer you send regular payments to, should also have information specific to your loan. The noteholder is the entity who owns your loan. For private loans, that would be the direct lender.

If you don’t know who your private student loan servicers are, it should be listed on your original loan paperwork, such as a promissory note or disbursement notice.

You may also be able to find the name of the lender or servicer by checking your credit report. Private student lenders may report your loans to the credit reporting companies even while you’re still in school or in deferment. Your school’s financial aid office may also be able to assist you.

Here are some tips for taking control of your student loans.

Where can I file a financial aid or student loan complaint?

If you’re having an issue with your college or university’s financial aid or student loan, you can file a complaint with a government agency.

Depending on the type of aid you receive for your schooling, you can submit a complaint to these government agencies, and they will work to get you a response.

Depending on your issue, you may also want to file a complaint with your school’s accrediting agency or state approval agency. Note that if your school closed, there are processes for getting student loans discharged.

What is a student loan servicer?

Student loan servicers are companies and organizations that collect payments on a loan, respond to customer service inquiries, and perform other administrative tasks associated with maintaining a loan.

Your student loan servicer is the company that sends you a billing statement each month. Your servicer will often be different than the lender who originated your loan. Loan servicers also:

• Track loans while borrowers are in school
• Process payments
• Respond to borrower questions and requests for information
• Accept applications and process changes in repayment plans, deferments, forbearances, or other activities to prevent default
• Maintain loan records
• Ensure that loans are administered in compliance with federal regulations and other legal requirements

Who is my student loan servicer?

If you don’t know who your servicer is, don’t worry. For federal student loans, you can find your servicer by visiting the U.S. Department of Education’s Federal Student Aid website. For private student loans, look at your latest billing statement or check your credit report.

Sources and further reading

• My school closed and now I can’t graduate. What happens to my student loans? — source date: 2024-05-14.
• How do I find out information about my student loans? — source date: 2024-12-03.
• Where can I file a financial aid or student loan complaint? — source date: 2024-04-15.
• What is a student loan servicer? — source date: 2024-05-14.
• Federal Student Aid: Closed school discharge.

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.