However, if you believe you have a claim against your school under state law, such as fraud, you may still pursue debt relief
based on borrower defense to repayment, as described below, even if you transfer your credits to another school.
Students who attended a Corinthian school (Everest, WyoTech, or Heald)-- regardless of whether it closed — who believe they were defrauded or that their school otherwise violated applicable state law may be eligible for loan forgiveness (discharge)
based on a borrower defense to repayment.
ED will contact you as it processes your application for loan forgiveness
based on borrower defense.
However, if you believe you have an allegation, such as fraud, against your school under state law, you may still pursue debt relief
based on borrower defense to repayment, even if you transfer your credits to another school.
In addition to the types of forgiveness, cancellation, and discharge shown above, you may also be eligible for discharge of your federal student loans
based on borrower defense to repayment if you took out the loans to attend a school that misled you, or engaged in other misconduct in violation of certain state laws, and if the school's act or omission directly related to your federal student loans or to the educational services that you paid for with the loans.
Borrowers who enrolled in a Heald College program on or after the dates specified here may apply for a discharge
based on a borrower defense by doing the following:
Not exact matches
A statement that the
borrower wishes to assert a
borrower defense to repayment
based on state law
Corinthian Colleges, including Everest, Heald, and WyoTech, are examples of
borrower defense situations where the federal government is willing to consider student applications for forgiveness
based on the misconduct of the school.
For example, personal injury claims or claims
based on allegations of harassment are not
bases for a
borrower defense application.
Fourth, the DOE Secretary needs to streamline the process whereby students who file administrative claims
based on the closed - school rule or the so - called
borrower defense can have their claims resolved quickly.
The DOE is also streamlining procedures for
borrower defense relief, which allows a debtor to object to the repayment of a student loan
based on a school's alleged misconduct.
On average, based on these reports, the Department continues to receive 200 Borrower Defense applications each da
On average,
based on these reports, the Department continues to receive 200 Borrower Defense applications each da
on these reports, the Department continues to receive 200
Borrower Defense applications each day.
Regrettably, the Department failed to restore Pell eligibility to
borrowers found harmed by other school misconduct, including those with valid claims to a
borrower defense to repayment or to discharge
based on their school's false certification of eligibility for financial aid.