If a school closes while a borrower is enrolled (including on approved leaves of absence) or within 120 days of his or her dropping out, that borrower may qualify to have his or her loan(s) discharged.
If the borrower was offered a Teach-Out program and chose not to accept, if the borrower completed his or her program of study at a different institution, or if the borrower completed all of his or her program coursework (even if they have not received a diploma or certificate), he or she is not eligible.
Direct Loans, FFEL Program loans and Perkins Loans are all eligible for student loan discharges due to a closed school.