Art Institute of Seattle shutters. Now what to do with those student loans?

The Art Institute of Seattle is closing Friday, leaving more than 600 students in limbo.

The institute made the announcement that it was closing just two weeks before the end of the winter quarter. Now, students are scrambling to figure out what to do next. Many are wondering what to do about their student loans.

Those who took out federal loans may be eligible for a discharge. In some situations, like a school closure, students don’t have to repay loans.

But there’s a trade-off: They lose those school credits.

“It’s an important choice for students to make,” said Don Bennett, deputy director of the Washington State Student Achievement Council, the state agency that regulates schools like the Art Institute of Seattle.

Bennett says the students will have to make these decisions based on where they are in their courses or how close they are to completing their degrees.

“The advantage that the Art Institute of Seattle students have is that this is a regionally accredited school,” he said. “So the credits they’ve earned there should be accepted and transferred to other institutions.”

The agency is hosting two information fairs next week where students can learn about their options.

The Art Institute of Seattle opened in 1946. In recent months, it’s been struggling financially. Last October, the school laid off most of its full time faculty. As of February, it wasn’t enrolling any new students.