What Is Borrowers Defense?

by Matthew RossDecember 9th 2019

Who Qualifies?

The federal government has opened a filing period for former students who feel like they were misled by their university or that the university engaged in other misconduct. Specifically, you may assert borrower defense by demonstrating that the school, through an act or omission, violated state law directly related to your federal student loan or to the educational services for which the loan was provided. Students are advised not to transfer any credits from the college that committed the alleged fraud. If your college closed while you were attending, you may qualify for guaranteed forgiveness through the in-school closure program.

How Long Does It Take?

The time frame for the government to respond to your claim is 12-24 months, however due to the enormous application rate borrowers are noticing slightly longer processing times. Your loans will immediately be placed into a state of forbearance. You are still able to make payments on your loans during this time however it is not required. 

What if I'm in Default or Being Garnished?

According to the rules for borrower's defense to repayment, if you are defaulted or having your wages garnished all collections actions will be abandoned until a decision is made. This time period will give you an opportunity to get back on your feet without having to worry about paying on loans you feel should be discharged.  

Are Borrowers Getting Their Loans Forgiven?

As of June 2019, there have been over 47,000 applications for borrower's defense that have been approved with over $534,000,000 in student loans being discharged. This is not an instant fix; your loans will not go away overnight. Sometimes the process can take a couple years, but you will get the answers you are looking for. 

How Do I Begin The Application Process?

The application is a very time-consuming process. Qualified enrollment agents can help speed up the application process and assure your application is filled out in its entirety and that you have all the required supporting documents. The process begins with a short interview to determine your needs and severity of your case. You will be educated on the process and any questions will be answered at this time. A deposition date will be scheduled where the borrower will have an hour counseling session about his or her experience with the school and the alleged fraud they might have committed. After the application is completed it will be submitted to the borrower for approval and then submitted to the Department of Education for processing. For more information fill out the form below and a qualified represenitive will contact you shortly.