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ERIC Number: ED593613
Record Type: Non-Journal
Publication Date: 2019-Feb-5
Pages: 28
Abstractor: ERIC
The Closure of Institutions of Higher Education: Student Options, Borrower Relief, and Other Implications. CRS Report R44737, Version 9. Updated
Hegji, Alexandra
Congressional Research Service
The recent closure of multiple large, proprietary (or private, for-profit) institutions of higher education (IHEs) has brought into focus the extent to which a postsecondary student's education may be disrupted by a school closure. However, even in instances of a small IHE's closure, student concerns remain the same. Concerns include the following, among others: Can they continue their postsecondary education at another school? How will they finance future postsecondary educational pursuits? Are they liable for repaying loans they may have borrowed to pursue a postsecondary credential that they were unable to obtain because of an IHE's closure? This report provides an explanation of the options a postsecondary student may pursue in the event the IHE he or she attends 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 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 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.
Congressional Research Service. Web site:
Publication Type: Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: Policymakers
Language: English
Sponsor: N/A
Authoring Institution: Library of Congress, Congressional Research Service (CRS)
Identifiers - Laws, Policies, & Programs: G I Bill; Pell Grant Program