The Education Department under President Biden only recently formed significant borrower defense regulations in response to the sudden closure of Corinthian Colleges. However, Secretary DeVos (of the Trump administration) notoriously called the program a “free money” giveaway and implemented processes that led to over 130,000 borrower defense rejections. In fact, before 2015, only 5 people ever applied for borrower defense although this process had technically been available for half of a century.ĭuring the Obama administration, a record number of borrower defense claims were approved - most of them right before Trump took office. In 1994, the Department of Education enacted sparse borrower defense regulations that left a lot of questions unanswered.īoth the 19 regulations are widely considered unclear (at best) by legal scholars. In 1965, Congress passed the Higher Education Act, which allowed the Secretary of Education to determine when school misconduct justified borrower defense against repayment. Student loan borrowers are eligible for this type of loan forgiveness if their school defrauded them in some way. Often shortened to “borrower defense,” borrower defense to repayment is federal student loan discharge - whether in part or in full - due to school fraud and predatory lending. Think you may qualify for a borrower defense claim? Ahead learn more about what borrower defense is, what situations qualify for borrower defense loan forgiveness, and how to apply for it. Your school defrauded you by breaking state laws, like consumer protection statutes. Your school defrauded you by intentionally misleading you concerning its program(s). Department of Education, 4255 W Hwy 90, Monticello, KY 42633.įor you to be eligible for borrower defense loan forgiveness, either of the following must be true: Submit an online borrower defense to repayment claim application at /borrower-defense.įill out this PDF, then email it out this PDF, print it off, and send it through regular mail to: U.S. You can apply for the borrower defense application process in 3 ways: ![]() This term is often shortened to “borrower defense.” Grants are for up to $7,000 per year.Table of contents What is borrower defense to repayment? Borrower Defense Schools List Can I apply for borrower defense for a loan from a school not on the list? Borrower Defense Eligibility Requirements Does borrower defense forgive all of my student loans? Does my school have to be closed for me to qualify for borrower defense? How to apply for borrower defense to repayment Should you apply for forbearance while waiting on your application? How long should my borrower defense application take? How can I check the status of my borrower defense application? What to expect if your application is approved Will my previous payments be refunded if my application is approved? How does borrower defense loan forgiveness affect my taxes? What should I do if the wrong school name is listed on my borrower defense approval notification? What to expect if your application is denied What should I do if I disagree with their decision? What should I do if I have new allegations of misconduct against my school? You have optionsīorrower defense to repayment is the discharge or cancellation of part or all of your federal student loans due to fraud and/or predatory lending practices by your school. citizen or eligible non-citizen have applied for financial aid using the Free Application for Federal Student Aid (FAFSA) be enrolled at least half-time as an undergraduate and must be a junior or senior with the intent to attain licensure as a teacher in math, science, special education in a public school in Arizona or attain licensure as a teacher in elementary education in a public school that are experiencing a shortage of teachers. To be eligible an applicant must be a permanent legal resident of Arizona be a U.S. ![]() The Math, Science and Special Education Teacher Loan Forgiveness Program (MSSE) is a student-centered, need-based forgivable loan designed to financially support and to encourage Arizona resident junior or senior college students to enter into the teaching profession in a public school in Arizona.
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