Closure of Institutions of Higher Education: Student Options, Borrower Relief, and Other Implications [Updated November 17, 2020] [open pdf - 1MB]
From the Introduction: "This report provides an explanation of the options a postsecondary student may pursue in the event the IHE [institutions of higher education] he or she attends permanently closes, any financial relief that may be available to such students, and other practical implications for students following a school's closure. First, this report describes the academic options available to such students, such as participating in a teach-out or transferring to a new IHE. Next, it discusses issues related to financing a postsecondary education, including the extent to which borrowers may have any loans borrowed to finance educational expenses discharged due to a school closure and whether future financial assistance, including federal student loans, Pell Grants, and GI Bill educational benefits, may be available to students should they decide to continue their postsecondary education at another IHE. This report then describes additional relief that may be available to students who attended IHEs that closed, such as the potential to have tuition that has been paid reimbursed through a state tuition recovery fund. Finally, this report describes some potential income tax implications for students when their IHE has closed, including the extent to which they may incur a federal income tax liability for loans discharged and whether higher education tax credits remain available to them in future years."
CRS Report for Congress, R44737
Congressional Research Service: https://crsreports.congress.gov/