The borrower defense is a relief program that allows borrowers to have their federal student loan debt forgiven. If your school engaged in deceptive marketing, used strong-arm recruiting tactics, inflated enrollment numbers, violated state law, or misled them about tuition costs, graduation and job placement rates, or anything else deceptive, you may be thinking:
- How does the borrower's defense work?
- Who is eligible to use the borrower defense?
- Whom can the borrower's defense be used against?
- What is the result of borrower defense claims?
- What if my application is denied?
If you or someone you know think they may be eligible to use the borrower defense claim, contact Law Office of Simon Goldenberg, PLLC. To schedule a free consultation where an experienced attorney will review your claim and determine the best strategy moving forward, contact us at 888-301-0584 or online.
How Does The Borrower Defense Work?
The borrower defense has been available since 1995 and has been used to erase over $15 billion in student loan debt owed to mostly for-profit colleges. The borrower defense is a program that helps individuals who have been defrauded by their colleges.
Who Is Eligible To Use The Borrower Defense?
Anyone who has taken out a federal student loan has the right to use the borrower defense, including parents who borrowed using a Parent PLUS Loan. However, you may not be eligible for claims relating to Perkins loans or the Federal Family Education Loan Program taken out before 2011.
Therefore, if you have taken out a federal student loan since 2011 and believe your college misled you about the education you would be receiving, you may want to apply for the borrower defense.
How To Apply For The Borrower Defense
To submit a borrower defense claim application, you can go to the Federal Student Aid website or complete a PDF application and mail it to the United States Department of Education. Once the Department of Education receives your application, they will likely place your student loan account in administrative forbearance.
The timeline for determining whether the loans will be forgiven depends on if the college in which you were misled is on the offender list or not:
Suppose your school is on the list of schools that have been found to have misled students. In that case, your student loans will be forgiven once a settlement with the school is completed, even if the Department of Education denied your borrower defense application.
If your school is not on the list of schools that have been found to have misled students, your student loans will not be canceled until a settlement with the school is reached; however, the Department of Education is only required to review the application within three years of the settlement date.
Whom Can The Borrower Defense Be Used Against?
The borrower's defense can be used against any school. However, as discussed above, the Department of Education does not need to review the application until three years after the settlement is entered with a non-listed school. On the other hand, forgiveness will come more quickly if the school is already on the list of known schools that mislead their students. You can find that list here.
What If My Borrower Defense Application Is Denied?
If an application for a borrower defense claim is denied, you may be able to ask the Department of Education to reconsider your borrower defense application. When making your reconsideration request, you will need to submit documents showing the following:
- Which decision you disagree with
- Why the decision was made incorrectly
Additionally, you must provide any other evidence that may support your claim. However, it is important to know that not all denials are eligible for reconsideration. To determine if your denial is eligible for reconsideration, contact an experienced attorney.
Hiring A Consumer Debt Attorney In New York
If you or someone you know believes they have a borrower's defense claim or their claim has been denied, an experienced attorney will be able to help. The student loan lawyers at Law Office of Simon Goldenberg, PLLC will review the facts of your claim and provide the best strategy for you moving forward. To schedule a free consultation, contact Law Office of Simon Goldenberg, PLLC by calling us at 888-301-0584 or online.