Student Loan Law: 16.8.6.2.2 Student tuition recovery funds
Private student loan relief based on school misconduct may be available from state tuition recovery funds (STRFs), which are created and governed by state statutes.358 For example, if a school closes before a borrower is able to complete their education, the borrower may be eligible for partial or total relief on their private student loans depending on how the state law calculates relief. Relief may include refunds of payments made as well as the pay-off or cancellation of the outstanding balance.