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Borrower Defense Application from the Department of Education

There are tens of thousands of borrowers have applied for what is called “borrower defense.”  These borrowers are arguing that they shouldn’t have to pay back their student loans because of fraud, forgery, or, in many cases, because of misdeeds by their school.

These borrowers went to places like ITT Tech or Corinthian Colleges, which were ultimately revealed to have a long track record of misleading their students.  These schools claimed the educations they offered would lead to better jobs and better salaries.  Instead, these for-profit schools left students in debt without the needed credentials to pursue their career.

Under federal law, borrowers have the option to apply for discharge because of these misdeeds, but the Department of Education hasn’t processed a single borrower defense application in more than a year.

Earlier this week, the Harvard Project on Predatory Student Lending sued the Department of Education this week for their failure to process applications.

Have you been affected by this issue? If so, you can participate in the lawsuit by submitting your testimony about your experiences with borrower defense. 


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