Right
in that case the school may have been required by federal regulations to return some or all of the loan money to your loan servicer.
Do you also know about this - by federal regulations. and can they transfer it to other administrators?
If we transfer your federal student loans from one administrator to another administrator, your loans will remain the property of ED. Transferring to another servicer simply means that a new servicer will provide the support you need to fully repay your loans