In March of 2016 the Special Master for Borrower Defense at the Department of Education stated the unit had received 1,109 claims
for Borrower Defense forgiveness.
It is not clear exactly how many of the submitted applications
for Borrower Defense forgiveness have actually been granted.
Not exact matches
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.
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.
Under a
borrower defense to repayment, you may be eligible
for loan
forgiveness (a discharge) of the federal Direct Loans you took out to attend a school if that school committed fraud by doing something or failing to do something, or otherwise violated applicable state law related to your loans or the educational services you paid
for.
In response, the Obama administration established a protection, the
Borrower Defense to Repayment rule, that would grant full loan
forgiveness to students who could prove they were defrauded by a
for - profit college.
I always put it in forbearance, is anyone knows if I can get the loan
forgiveness or the
borrower Defense for Repayment discharge.
As
for dealing with
forgiveness for fraud, you want to look into a process called
Borrower Defense To Repayment: http://thecollegeinvestor.com/18752/understanding-
borrower-
defense-repayment/
You may be eligible
for borrower defense regardless of whether your school closed or you are otherwise eligible
for loan
forgiveness under other laws.
Under the law, you may be eligible
for borrower defense to repayment
forgiveness of the federal student loans that you took out to attend a school if that school misled you, or engaged in other misconduct in violation of certain state laws.
Under a
borrower defense to repayment claim, you may be eligible
for loan
forgiveness (a discharge) of the federal Direct Loans you took out to attend a school if that school committed fraud by doing something or failing to do something, or otherwise violated applicable state law related to your loans or the educational services you paid
for.
Late last week, we learned that no applications
for loan
forgiveness have been processed under
borrower defense to repayment regulations since the new administration took over in late January.
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.
In the last month alone the Department of Education has received over 12,000 potential «
borrower defense» cases in which students can ask
for Corinthian College student loan
forgiveness.
Borrower defense was set to go into effect on July 1, which provides a path
for defrauded students to have their loans discharged and get a fresh start, while making schools financially culpable
for the costs of loan
forgiveness.
Wright, who owes over $ 25,000 in student loans, applied
for student loan
forgiveness under the
borrower defense rules put in place by the Obama administration.