If your school defrauded or misled you, then you might be able to apply for a loan discharge through the “borrower defense to repayment” or “borrower defense” program. Read on to learn how borrower defense works, who qualifies, the reasons the program exists, how regulations changed during the pandemic and why you want to move swiftly to file a claim if you’ve been a victim of educational fraud or deceit.
What is borrower defense to repayment?
Borrower defense to repayment is a federal program that will discharge some or all student loan balances for students who were misled or defrauded by their school. The program has been around for several decades but gained traction in 2015, when for-profit Corinthian Colleges closed after being accused of engaging in fraud and using illegal tactics to collect on student loans. Students who had taken out loans for the college advocated for loan discharge, which the Education Department eventually granted.
