Student loan debt is a big burden for millions of Americans. But if you took out federal student loans to attend a school that misled you or broke certain laws, there may be a way to get your loans forgiven. This option is called Borrower’s Defense to Repayment. In this guide, we explain exactly what Borrower’s Defense is, who can qualify, how to apply, and the latest updates from the Department of Education.
What Is Borrower’s Defense to Repayment?
Borrower’s Defense to Repayment is a legal way to ask the U.S. Department of Education to cancel your federal student loans. This option is available if your school misled you or committed fraud. That means your college may have lied about things like job placement rates, program costs, or credit transfers. If your school did something wrongful and you relied on that to enroll or borrow, you may have a valid claim for loan forgiveness through Borrower’s Defense.
Borrower’s Defense only applies to federal student loans. Private student loans are not eligible. It’s also important to know that your school doesn’t have to be closed. This program is different from “Closed School Discharge.” You can still apply even if your school is open, as long as they misled you or broke the law.
Who Qualifies for Borrower’s Defense?
To qualify, you need to prove that your school did something misleading or illegal that directly caused you to borrow federal loans or stay enrolled. Some common examples include:
- The school lied about job placement rates or average salaries after graduation.
- The school promised certain job certifications or licenses that its program did not actually qualify you for.
- The school told you your credits would transfer to another college but they didn’t.
- The school gave false information about the cost of the program or the types of loans.
You don’t need to have a lawyer, but you must provide clear evidence. That could include emails with admissions officers, brochures, published false data, or anything else that proves the school misled you.
How to Apply for Borrower’s Defense
Applying for Borrower’s Defense is free and can be done online at the Federal Student Aid website. Here are the steps:
Step 1: Gather Supporting Documents
Collect all materials that support your claim. This might include enrollment agreements, course catalogs, financial aid letters, school flyers, or advertisements that show false promises. It’s also helpful to write a clear statement explaining what happened and how it affected your decision to take out loans.
Step 2: Go to the Federal Student Aid Website
Visit studentaid.gov/borrower-defense and click on “Submit a Borrower Defense to Repayment Application.” You will need your FSA ID to log in. Once signed in, the application will guide you through several questions about your school, your loans, and what you believe the school did wrong.
Step 3: Complete the Application
Answer each question honestly. You’ll be asked about your experience, how the misleading information influenced your choices, and whether you’ve tried to get help through your school. Attach all your evidence files before submitting the form.
Step 4: Wait for Review
The Department of Education will contact you once they receive your application. Reviews can take months, so be patient. During the review, your loans may go into forbearance, meaning you don’t have to make payments while your application is under review. Interest may still build up during this time unless your claim is approved.
Updates to Borrower’s Defense Policies
Borrower’s Defense has changed a lot in recent years. New policies under the Biden Administration have made the process easier and more fair. In 2022, the Department of Education announced full loan discharges for all students who were misled by certain schools, like Corinthian Colleges, ITT Tech, and others. More changes in 2023 established streamlined timelines for decisions, clearer rules, and automatic relief for affected borrowers in some cases.
Students who already applied and were denied under old rules may have their claims reviewed again. The Department is also improving how it responds to these applications, and they are aiming to process them faster and more fairly.
Conclusion: Is Borrower’s Defense Right for You?
If your school lied to you about your education or job chances and you took out federal loans to attend because of that, Borrower’s Defense may give you a way to cancel those loans. It takes effort to apply and no one is guaranteed approval, but it’s worth it if you believe your college wronged you. Be honest, give solid proof, and check the official site regularly for updates. Thousands of borrowers have already had their loans canceled through this program — you could be next.
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