Posted on Feb 16, 2023
What is Borrower Defense Loan Discharge for Federal Student Loans?
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"Borrower defense to repayment is available for borrowers who have been misled by a college or university."
What is Borrower Defense Loan Discharge for Federal Student Loans?
Posted from kiplinger.com
Loans
Education
Law
Posted 2 y ago
Responses: 1
If the loans are being discharged based on wrongdoing of the college/university, I would hope that the Federal government then turns around and fines the institution the amount so they are on the hook for their actions.
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LTC Eugene Chu
It is. One example is University of Phoenix.
https://www.npr.org/2019/12/10/786738760/university-of-phoenix-reaches-191-million-settlement-with-ftc-including-debt-rel
https://www.npr.org/2019/12/10/786738760/university-of-phoenix-reaches-191-million-settlement-with-ftc-including-debt-rel
University Of Phoenix Reaches $191 Million Settlement With FTC, Including Debt Relief
The school has 15 business days to inform eligible students, "You no longer owe any money to University of Phoenix. You don't have to do anything to get this relief."
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