If your college or university has recently closed, you may be wondering how or even if you can recover the time, effort, and money you've invested, and what your next steps should be to get back on an educational track leading to the career of your dreams.

A school closing puts students at risk of losing their:

• Financial investment: A college education is notoriously expensive. A student and their family likely paid thousands of dollars for tuition, fees, books, and supplies, with those funds coming from their savings, grants, or loans.
• Time investment: On top of the financial commitment, students have also spent many hours in classes, studying, and passing exams.
• Research investment: Most students and their families spend considerable time determining the right school for the right price that would provide the education necessary to secure a bright and lucrative future. When the school they've chosen closes, they have to start their research over again.

School Closures Are Increasingly Common

Schools are closing with increasing frequency as institutions of higher education that were already struggling start losing their federal COVID-19 relief money.

A total of 35 non-profit and 156 for-profit four-year institutions closed between 2018 and 2021— including Bloomfield College (New Jersey), Finlandia University (Michigan), and the San Francisco Art Institute—according to data provided by the National Center for Education Statistics.

A college closure can thrust you or your child into a state of confusion and worry. Some colleges notify students of impending closure, but most students are broadsided by the news. The stakes are high, and important decisions you make now have potentially long-term effects.

At a time like this, experienced attorney-advisor Joseph D. Lento and the Education Law Team at the Lento Law Firm can answer your questions and help you make the best decisions about every aspect of this complicated and stressful situation.

Recourse Available For Students Following College Closure

Loan Forgiveness

If your school closes, it may give you the option of a "teach-out" whereby you can complete your program of study and receive your degree or certificate at another school. If you accept this offer, you are obligated to repay your student loans according to the agreement you signed.

You are under no obligation to accept a teach-out offer. If you decline, you can apply for a “closed school discharge” of your federal loans or apply for state tuition recovery funds. Both options mean you would no longer be obligated to pay back your loans.

Warning: Be aware that during this time you may be contacted by fraudulent student loan debt relief companies who will charge you fees and provide no help at all.

Grant Restoration

You may have received a grant to help you pay college expenses. The four most common types of grants are Federal Supplemental Educational Opportunity Grants (FSEOG), Teacher Education Assistance for College and Higher Education (TEACH) Grants, Pell Grants, and Iraq and Afghanistan Service Grants.

If your school closes before you've completed your education, the grantor may be willing to restore your grant eligibility. For example, the U.S. Department of Education can restore portions of your Pell Grant eligibility.

Obtaining Academic Transcripts

If your school has closed abruptly, you likely haven't had the chance to request your academic transcripts. In this case, you'll need to contact the state licensing agency to ask whether the state has arranged to keep the records.

Transferring Credits to a New School

There's no guarantee that the school you transfer to will accept any or all the credits you earned at the closed school. Even if you accept a teach-out offer, the number and types of credits that transfer is spelled out in the agreement negotiated between the two schools.

Contact the Lento Law Firm

A school closure can have a major impact on your education, your future career, and your life. You need to make multiple decisions quickly and take action to get back on the road to success.

The good news is that experienced education attorney-advisor Joseph D. Lento and the Education Law Team at the Lento Law Firm can help you navigate this course. Call today toll-free at 888.535.3686or online.