My school is planning to close and I am being offered a “teach-out” to complete my program. What happens to my student loans?

Answer:

If you accept a “teach-out” to complete your program at your school or another school, you will be responsible for repaying all of your student loans. 

When you’re told that your college will be shutting down, there can be a lot of uncertainty about what comes next. Here is some helpful advice to help you navigate the situation.

If your school announced that it is closing, they may offer you a “,” 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 not have to pay back your federal student loans. If you have private student loans you may still be responsible for your private student loans. Some states may have programs that assist students with private student loans in the event of a school closure. Some private student lenders may offer options to assist certain borrowers in this situation.
  • 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 loans. 

Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The Miss April updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer