Borrow defense is short for borrower defense to loan repayment forgiveness. The full term makes it a little easier to understand. We’re talking about legal ground for not paying back federal student loans if your school is involved in some form of misconduct. You can apply for this relief on the Federal Student Aid website.
Why might you need or qualify to receive loan forgiveness due to borrower defense?
- The college you attended misled you
- The college you attended become engaged in misconduct
- The college you attended broke state laws regarding federal aid
- The college you attended broke state laws related to providing education services
What are some examples of situations that fall into these categories? Perhaps your school made fraudulent promises regarding work prospects after graduation, the school lied about being accredited, the cost of education was misrepresented, or you were defrauded in some other way. Basically, if you didn’t get what you were led to believe you were paying for with your federal loans, you may not have to pay them back.
Keep in mind that this may not apply to all of your student loans, and you may have to seek separate legal recourse if, for example, you used private loans or your own savings to pay for tuition.
Financial Planning and College Admissions Assistance from the Pros
College Planning Source is a great place to begin if you are a student or the parent of a student who intends to go to college. Give us a call at 858.676.0700, or you can request your college assessment online to get your plans started today.
