I've never heard that. But I did a quick google search and found this. You will have to see if it fits the criteria. Looks like it applies to Federal school loans, probably does not apply to private school loans.
https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/closed-schoolDischarge 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.
You have completed all the coursework for the program, even if you have not received a diploma or certificate.