Borrower Defense
What is Borrower Defense?
Borrower defense to repayment, or “borrower defense,” refers to the provision in law that federal student loan borrowers should not be forced to repay loans for classes or degrees from schools that have lied to, deceived, and misled them.
Borrower defense is an important safeguard for student borrowers whose loans should not have been made in the first place and were only made because of a failure in the higher education system at large – by the Department of Education, the accreditor, and/or the school itself. It is also a critical safeguard for the taxpayer investment in higher education. The Higher Education Act, U.S. Department of Education regulations, student loan contracts, and rules that govern creditor-borrower relationships all support borrower defense.
The Fight for Borrower Defense
Borrower defense regularly comes under attack by hostile administrations, the for-profit college lobby, and trade groups with direct financial interests in removing accountability guardrails and keeping the spigot of federal money flowing to profit-making ventures.
The Latest
On Tuesday, November 12, 2024, the Project on Predatory Student Lending and Public Citizen filed an amicus brief urging the Supreme Court to grant the Department of Education’s cert petition and overturn a Fifth Circuit decision on existing borrower defense regulations. Read more about the Fifth Circuit decision and the petition in our statement here.
Borrower Defense Resource Toolkit
PPSL and TICAS has released a series of materials sharing facts about this longstanding policy on student debt relief that has increasingly coming under attack:
Borrower Defense 101: A summary of the history of borrower defense and how it has been implemented over the last 30 years.
Myths vs. Facts: Debunking myths and misconceptions that have been used in recent attacks against the rule.
Overview Fact Sheet: A one page overview of borrower defense, the attacks against it, and what steps must be taken to protect borrowers.
In the News
We know that many borrowers don’t know about it or have not trusted the Borrower Defense process. The Borrower Defense process has been difficult to navigate, and we have been the first to hold the Department accountable for failing to follow the law on borrower defense. But, because borrowers have come forward and have fought back, we have made progress. In the past year, the Department has granted more borrower defense applications than ever.
If you attended a school that cheated, lied to, or misled you, don’t wait, apply for Borrower Defense to Repayment.
Help For Borrowers
Sweet v. Cardona
If you applied for borrower defense before November 16, 2022, you may be eligible for certain procedures under our settlement in the Sweet v. Cardona class action case against the Department of Education, including a guarantee that you will receive an answer on your application within 36 months of the settlement’s effective date.
For more information, please visit our Sweet settlement FAQs.
Spread the word!
Join us in encouraging those who were cheated by a predatory for-profit college to apply for the debt cancellation they are legally owed under borrower defense. This process is free, and does not require special expertise.
Here’s how you can help:
Post on social media (Tag us on X/Twitter)
Post in community groups with fellow student borrowers
Email friends and former classmates to make sure they’ve filed their borrower defense
Say no to scammers. The borrower defense application is straightforward and free. Anyone who asks you for money to file an application is a scammer.