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Student Loans from closed schools.

San Diego, CA |

I have a student loan from the early 1990s . The school closed in the first 3 months . According to the info I read the loan should be discharged because of the school closure . I have tried filling out the forms and sending in the paperwork and keep getting the run around . They have be taking my tax refunds every year to pay for this and the amount never gets smaller . I am tiered of having my tax refunds go to something I should not have to pay . Is there a way to get rid of this once and for all ?

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Attorney answers 3


I have changed the practice area to "Debt Collection." I think you might get some answers from those attorneys.


There is good info re trade schools from the U. S. Dept of Ed. here:

And here:

"You may be eligible for discharge of your Direct Loans and FFEL Program loans under either of these circumstances:

Your school closes while you're enrolled, and you do not complete your program because of the closure. Any federal student loan obtained to pay your cost of attendance at that school could be discharged.  If you were on an approved leave of absence, you are considered to have been enrolled at the school.

Your school closes within 90 days after you withdraw.

You are not eligible for discharge of your Direct Loans or FFEL Program loans if your school closes and any of the following is true:

You withdraw more than 90 days before the school closes.

You are completing a comparable educational program at another school. If you complete such a program at another school after your loan is discharged, you might have to pay back the amount of the discharge.

You have completed all the coursework for the program, but you have not received a diploma or certificate.

To receive a closed school discharge application, contact your loan servicer.

For answers to questions about your closed school, call the appropriate person on the list of Closed School Customer Service Contacts."

My responses to questions on Avvo are never intended as legal advice and must not be relied upon as legal advice. I give legal advice only in the course of an attorney-client relationship. Exchange of information through Avvo's Questions forum does not establish an attorney-client relationship with me. That relationship is established only by individual consultation and execution of a written agreement for legal services.

Gayle Anne-Marie Gutekunst

Gayle Anne-Marie Gutekunst


As always, the definitive answer from Attorney McCall.


Bankruptcy allows debtors to prove hardship to eliminate student loans. The burden of proof is great but worth the filing if the loans are large.