Please stop giving students that might be reading this bad information about Closed School Discharges.
The likelihood of such plan in the way that DCEH is doing these closures is very slim to qualify for a discharge. If all the campuses had closed and locked their doors last week like ITT did, then yes... easy discharge. But the tuition reduction plan or $5000 credit is a work around so that students won't be getting a discharge.
https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/closed-school#q-and-a
If my school closes and I then enroll (either through a teach-out plan or by transferring academic credits or hours earned from the closed school) in a comparable program at another school for the purpose of completing the program for which a loan was made at the closed school, can I still receive a discharge?
No, not if you completed or are in the process of completing a comparable program of study.