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Initiatives
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Borrower Defense

Under previous law, students had a right to seek discharge of the federal Direct Loans they took out to attend a higher education institution if that school committed fraud; however, the rules did not establish any process for doing so. Very few student borrowers asserted this "borrower defense" to repayment until recently. Spurred by the large number of former Corinthian College students seeking relief after the for-profit chain's demise, the Department of Education (ED) in early 2016 began the process of creating a new borrower defense rule. Through this Negotiated Rulemaking, ED also made onerous changes to the financial responsibility requirements for independent nonprofit and for-profit institutions that participate in the federal student aid programs.

Department of Education and other Federal Resources

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Contact

Liz Clark
Director, Federal Affairs
202.861.2553
E-mail