Five of California’s Art Institutes and Argosy University campuses closed last week after the schools ran out of money. The U.S. Department of Education says federal student loans will be cancelled automatically, but only for the current term.
Students can apply to get their obligation to repay their older federal student loans for the closed campuses cancelled, or they can transfer their credits to another school. The Department of Education advises students that transferring could affect their eligibility to get those loans discharged. Students can also apply for help from California’s student tuition recovery fund.