When schools close there's a lot of confusion about what happens next, and if you have student loans but have not yet earned your degree, that only makes things more stressful.
That's why many students of closed schools will be approached by some companies--both legitimate and not--who will offer help get your student loans forgiven.
There are a few legitimate federal programs to help students whose schools have closed, but you don't need to pay anyone to take advantage of what they offer.
Loan forgiveness can only be given through the U.S. Department of Education.
It's called a "closed school discharge." It's granted on a case by case basis, and it is free. Find out more about how to apply here.
So if a company asks you to pay them to do it, that's a red flag.
You also want to look out for organizations with official-sounding names. If it's not the United States Department of Education--be suspicious.
Finally, don't trust any promises of immediate debt relief.
It's important to remember if you are already paying on the loan, keep doing it until the application is approved.
