What Borrower Defense to Repayment Does
Borrower Defense to Repayment is a federal program that cancels federal student loans for people whose school broke the law or made false claims that caused them to borrow. The U.S. Department of Education pays off the debt — you do not have to repay it — if you can show the school misled you about the program, job placement rates, accreditation, or ability to transfer credits.
This is different from other loan forgiveness programs because it is based on what the school did, not on your income or job. You do not need to work in a particular field or wait a certain number of years. If the school defrauded you, the debt goes away.
The program exists because courts have found that some schools knowingly misrepresented their programs to get students to enroll and borrow. Borrower Defense lets those students recover the money they borrowed as a result.
Key Takeaways
- Borrower Defense cancels federal student loans if your school made false statements about the program, job placement, accreditation, or credit transfer that caused you to borrow.
- You must file a claim with the Department of Education, not with your school or loan servicer, and include documentation of what the school claimed and what actually happened.
- The Department of Education investigates your claim and decides whether the school's conduct meets the legal standard for fraud or misrepresentation.
- If your claim is approved, your loans are cancelled and any payments you made may be refunded, though the refund process has faced delays.
- You can file a claim even if your school has closed, and you do not need a lawyer, though some borrowers hire one to help gather evidence.
What Counts as School Fraud Under This Program
The Department of Education looks for statements the school made that were false and that directly caused you to borrow. This includes claims about job placement rates, whether graduates actually found work in their field, how much they earned, or how quickly. It also covers false statements about whether credits would transfer to other schools, whether the program was accredited, or whether it met requirements for professional licensing.
The school's statement has to be something you relied on when you decided to enroll and borrow. If the school said 95 percent of graduates get jobs in their field within six months, and you later found out the real number was 40 percent, and you would not have borrowed if you had known the truth, that can support a claim.
Statements about the school's own reputation, general claims that the program is "excellent" or "well-regarded," or promises that you will definitely get a job do not usually meet the legal standard. The Department looks for specific, measurable claims that turned out to be false.
How to File a Borrower Defense Claim
You file your claim directly with the Department of Education's Federal Student Aid office, not with your school or your loan servicer. You can submit a claim online through the Department's website, or you can mail a paper form. The online process is faster and lets you upload documents as you go.
Your claim should include: the name of your school and the program you attended; the specific false statements the school made; when and where you heard or saw those statements (an advertisement, a conversation with an admissions counselor, a website page, a brochure); what actually happened instead; and how the false information caused you to borrow. Attach any documents you have: emails from the school, printed web pages, course catalogs, loan documents, transcripts, or job search records showing you could not find work in your field.
You do not need a lawyer to file, and you do not have to pay a filing fee. Some borrowers do hire a lawyer to help gather evidence or write the claim, but it is not required. If you do hire a lawyer, make sure they do not charge you an upfront fee — legitimate lawyers in this area typically take a share of the refund if your claim is approved.
What Happens After You File
The Department of Education reviews your claim and may ask you for more information. This process can take months or longer, depending on how many claims are being reviewed and how complex your case is. You will receive updates by mail or email about the status of your claim.
The Department investigates whether the school's statements were false and whether you relied on them when you decided to borrow. They may contact the school for records and ask the school to respond to your allegations. The school has a chance to defend itself or provide evidence that what it said was true.
If the Department decides in your favor, your federal student loans are cancelled. You will not have to repay them. The Department will also calculate any payments you made toward those loans and may refund that money to you, though the refund process has experienced significant delays in recent years.
What Happens If Your School Has Closed
You can file a Borrower Defense claim even if your school no longer exists. Many of the schools involved in fraud cases have shut down, and the program is designed to help those borrowers too. The Department of Education can still investigate what the school claimed and whether those claims were false, even if the school is not around to defend itself.
If your school closed, gather any documents you kept from when you attended: enrollment agreements, course materials, marketing materials, emails, or receipts. These become more important because you cannot contact the school to ask for records. The Department may be able to obtain records from state regulators or accreditation bodies that oversaw the school.
Borrower Defense vs. Other Loan Cancellation Programs
Borrower Defense is separate from Public Service Loan Forgiveness, which cancels loans after ten years of payments while working in government or nonprofit jobs. It is also different from income-driven repayment forgiveness, which cancels remaining loans after 20 or 25 years of payments based on your income. Borrower Defense does not require you to work in any particular field or make any payments — it cancels the loans outright if the school defrauded you.
You can pursue Borrower Defense at the same time as other forgiveness programs. If your Borrower Defense claim is approved, your loans are cancelled and you do not need to pursue other options. If your claim is denied, you can still use income-driven repayment or other programs you might be may be able to access for.
Common Reasons Claims Are Denied or Delayed
Claims are often denied because the borrower cannot show the school made a specific, false statement. Vague complaints that the school was not what you expected, or that you did not like the program, do not meet the legal standard. You need to point to something concrete the school said that was measurable and provably false.
Claims are also delayed when borrowers do not provide enough documentation. The more evidence you can attach — screenshots of the school's website, emails from admissions staff, advertisements, course catalogs with specific claims — the faster the Department can review your case. If you do not have documents, write down as much detail as you remember: the date you visited, who you spoke with, what they said, and where you saw the information.
The Department has faced a backlog of claims in recent years, which has slowed processing times significantly. Some claims filed years ago are still pending. You can check the status of your claim online using your claim number.
Frequently Asked Questions
Can I file a Borrower Defense claim if I already paid off my loans?
Yes. If your loans are paid off, you can still file a claim and request a refund of the payments you made. The Department will calculate how much you paid and refund that amount if your claim is approved. This can take additional time beyond the initial claim review.
What if the school is still open and denies the claims I am making?
The school will have a chance to respond to your claim and provide evidence that what it said was true. The Department of Education decides who is credible based on the evidence both sides provide. You do not need the school to agree with you — the Department makes the information.
Do I have to repay my loans while my claim is being reviewed?
No. Once you file a Borrower Defense claim, your loans are placed in a special status and you do not have to make payments while the Department reviews your case. Interest does not accrue during this time. You should still receive bills, but you can disregard them until your claim is decided.
What if my school made false claims but I cannot find proof?
Write down everything you remember: what the school claimed, when and where you heard it, who told you, and what actually happened. The Department understands that old documents may be hard to find. Detailed written accounts, combined with any documents you do have, can support your claim even if you do not have a recording or email from the school.
Can I hire a lawyer to help with my claim?
Yes, but be cautious about fees. Legitimate lawyers in this area typically work on contingency, meaning they take a percentage of your refund if your claim is approved. Never pay an upfront fee to a lawyer for a Borrower Defense claim. The Department of Education does not require you to have a lawyer, and many borrowers file successfully on their own.