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TFA does note:

> Students who are unable or unwilling to transfer their credits and continue their studies elsewhere can apply to the Education Department to have their federal loans forgiven through the department’s closed school discharge program. A recent rule change requires the department to automatically forgive the loans of some eligible borrowers.

But there, it's the US government that's paying. And I doubt that the late college chain has anything recoverable.



>And I doubt that the late college chain has anything recoverable.

Yeah, that’s why I latched on to the FDIC example: Institutions pay in at the start, so the money is there to do the bailout.


Do you lose your transcripts if you have your loans forgiven? What if a few years later a student enrolls in a different university and applies to have these old courses counted?




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