to the students then a head employee being temporarily unemployed. i would just flat out tell them to quit, get an excused absence and change majors. they have 120 days from the day they quit to be eligible for student loan discharge. if they agree to a teach out or transfer credits they lose the opportunity to discharge their loans. do the right thing
Discharge Criteria
You may be eligible for a 100% discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans under either of these circumstances:
Your school closes while you're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.
Your school closes within 120 days after you withdraw.
You are not eligible for discharge of your loans if your school closes and any of the following is true:
You withdraw more than 120 days before the school closes.
You are completing a comparable educational program at another school
through a teach-out agreement with the school,
by transferring academic credits or hours earned at the closed school to another school,
or by any other comparable means.
If your loan is discharged and you complete a comparable program at another school through any means by which you benefit from the training provided by the closed school, you might have to pay back the amount that was discharged.
You have completed all the coursework for the program, even if you have not received a diploma or certificate.