Borrower Defense

Today, the Senate voted 53-42 to pass H.J. Res. 76, restoring stronger borrower defense protections. The borrower defense to repayment rule allows students to discharge student loans tied to fraud and other illegal conduct by their colleges. In September, the Trump Administration rewrote the rule, and it will require 97 percent of students cheated by their colleges to repay...

Memo to interested parties on the borrower defense rules in advance of the vote in the U.S. Senate on a resolution (H.J. Res 76) to disapprove the 2019 rule and restore the stronger regulation created in 2016.

The borrower defense rule protects students by discharging loans tied to fraud and other illegal conduct by their colleges. In September, the Trump Administration rewrote the rule, and it will leave 97 percent of students cheated by their colleges having to repay their student loan debt. Meanwhile, more than 220,000 students are still waiting for the Department of Education...

In September, the Department of Education released a new version of the "Borrower Defense to Repayment" rule that would make it virtually impossible for students cheated by their college to cancel their student loans. Senator Dick Durbin and Representative Susie Lee have introduced a Congressional Review Act challenge to repeal this rule and restore stronger student protections

Federal law allows students whose schools have defrauded or cheated them to have their loans discharged.  In 2016, the Obama Administration issued a rule to articulate clear processes for applying for and granting borrower defense discharges. Today, the Trump Administration released a new rule that will make it almost impossible for students to get relief.

Claiming to protect students and hold colleges accountable, on Friday the Department of Education finalized its so-called borrower defense rule. The rule allows students to seek to cancel student loans connected to fraud and other illegal activity by their colleges.