Borrower Defense: What It Is and Who Qualifies for Relief?
Written by
Karen Doyle
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Melanie Grafil
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Student loan debt is an important issue for many people, and relief has been hard to come by. There is a program that can assist students who may have been misled by their school. It’s called Borrower Defense to Repayment, and here’s what you need to know.
What Is Borrower Defense to Repayment?
Borrower defense to repayment allows for some student loans to be discharged if the school engaged in misconduct while the student was in school and relying on a loan to pay for their education. It may also be eligible if the educational services you received caused harm, according to the Federal Student Aid website, studentaid.gov. The program applies to certain loans taken out to pay for attendance at specific schools.
The Higher Education Act established the borrower defense to repayment program in response to complaints that schools misled students when they accepted loans. The Act also provides for loans to be discharged if the borrower dies or becomes disabled, if the school the borrower attended closed and in some other circumstances.
Borrower defense to repayment applies to federal Direct Student Loans only, but Parent PLUS borrowers can also apply for borrower defense if their child qualifies. The student does not have to apply for the Parent PLUS borrower to apply.
Who Qualifies for Borrower Defense?
Students who believe they were misled by their school when they were deciding to enroll may qualify for borrower defense. To qualify, the school must have engaged in one or more of these kinds of misconduct.
Substantial Misrepresentation
This includes misleading or lying about the educational service offered, the financial charges students incur, or the employability of the school’s graduates. The information must have been considered when you enrolled or took out loans.
Substantial Omission of Fact
If the school did not lie or misrepresent factors that led you to enroll, remain at the school or take out loans, but concealed information that would have been important to your decision, you may be eligible.
Breach of Contract
This means the school did not do what it promised when you enrolled, or when you took out loans.
Aggressive and Deceptive Recruitment
Students who were pressured by the school into rushing into an enrollment decision or into taking out loans may qualify for borrower defense.
Judgment
If your school has been found by a court to have violated the law for providing services or making loans, you may qualify.
Prior Secretarial Action
If the Education Department revokes or denies participation in federal student aid programs, you may qualify for borrower defense.
What Loans Are Eligible?
Federal Direct Loans are eligible for borrower defense. Loans that can be consolidated into a Direct Federal Consolidation Loan, such as Federal Perkins Loans, Federal Family Education Program Loans, and Parent PLUS Loans, are eligible for consolidation.
If your school was closed, or is involved in a lawsuit or federal action, your loans are also eligible for borrower defense.
How To Apply for Borrower Defense
To apply for borrower defense, follow these steps.
- Visit the Federal Student Aid website.
- Review the information on how to submit a strong application, and gather the information you will need.
- Complete the Borrower Defense application form.
- Provide detailed explanations and all required supporting documents, including emails, brochures, class action lawsuit info, etc.
- Submit your application electronically or by mail.
Borrower Defense Checklist
Before applying for borrower defense, gather this information:
- Ads, including email, print, social media or web ads, from your school
- Student handbooks
- Course catalogs
- Email, letters or other communication from the school
- Documentation of your enrollment and program of study
- A copy of your contract with your school, if you have one
- Any court judgment or opinion if you are claiming breach of contract
- Documents showing that your school breached a contract
Include this information in your application:
- Descriptions of acts or omissions by your school
- The name of the school, and the name and title of anyone at the school, who committed the acts or omissions
- The dates when the acts or omissions happened
- How the acts or omissions affected your decision to attend the school, continue attending or take out your loans
- How you were harmed because of the school’s acts or omissions
What Happens After You Apply?
After you have completed and submitted your application, you will receive confirmation of receipt of your application from the Department of Education. If your application is incomplete, you will be notified that it cannot be considered.
According to Federal Student Aid, as of April 29, 2025, there is an injunction in place that postpones the effective date of the most recent borrower defense regulation, published on Nov. 1, 2022. While this injunction is in effect, borrower defense applications will not be adjudicated, but may still be submitted online.
You should continue to make required payments unless directed otherwise by the Department of Education. If your claim is approved once the injunction is lifted, you may be entitled to repayment of loan payments you made.
Borrower Defense vs. Other Student Loan Forgiveness Options
There are other ways to get student loans forgiven, each with its own requirements.
| Forgiveness Type | Who It’s For | Key Requirement |
|---|---|---|
| Borrower Defense | Those who were misled by the school | School misconduct (false claims, illegal practices) |
| Public Service Loan Forgiveness (PSLF) | Government/nonprofit workers | Forgiveness after 120 qualifying payments |
| Income-Driven Repayment Forgiveness | Low-income borrowers | Forgiveness after 20 to 25 years of IDR payments |
| Closed School Discharge | School closed while enrolled | Inability to complete the program |
Pros and Cons of Borrower Defense
There are advantages and disadvantages of the borrower defense program.
Pros:
- Full loan could potentially be cancelled
- Retroactive refunds of payments made, in some cases
Cons:
- Lengthy processing time (up to three years)
- Currently not adjudicating individual claims
- High documentation burden
- Not guaranteed, even with legitimate claims
Recent Updates to Borrower Defense
In January 2025, the Education Department approved student loan discharges for students from several schools who had applied for borrower defense. These students, who attended Ashford University, a Center for Excellence in Higher Education, Drake College of Business, or Lincoln Technical Institute, were notified by mail that their qualifying loans will be discharged because they were harmed by their school’s actions.
Final Thoughts
If you were taken advantage of by your school or made decisions based on misrepresentations and were harmed as a result, borrower defense can be a critical lifeline to reduce or eliminate your student loan debt. It’s not a guarantee, however — you need to submit a complete application with thorough supporting documentation. If you believe you qualify, apply right away.
Borrower Defense FAQ
Here are more answers to your frequently asked questions about borrower defense.- Who is eligible for borrower defense to repayment?
- Students whose school engaged in specific types of misconduct related to the services it provided or when it made student loans may be eligible to have those loans cancelled.
- How do I know if my school was involved in misconduct?
- Some schools have been judged to have been involved in misconduct, and loans to students who were affected have been discharged. If you are one of these students, you will have been notified by the Department of Education. If you believe you were harmed by the misconduct of your school, you can apply for borrower defense on the Federal Student Aid website.
- Can I still apply for borrower defense?
- Yes. However, as of Aug. 7, 2023, an injunction was issued preventing the Education Department from adjudicating any new borrower defense applications. On April 4, 2024, the department was ordered to postpone the effective date of new regulations. Borrowers can still apply, but no new applications will be adjudicated until the injunction is lifted.
- How long does borrower defense take to get approved?
- The Education Department has three years to approve or reject your borrower defense application once it has determined that the application is materially complete. If your application becomes part of a group claim, that three-year time frame will pause during the class action suit.
- What happens if borrower defense is denied?
- If the ED denies your borrower defense claim, you will have to start making your federal student loan payments again. Your loan will not be discharged.
Dawn Allcot contributed to the reporting for this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Federal Student Aid. "How long will it take you to review my borrower defense application?"
- Federal Student Aid. "What is Borrower Defense, and Should I Apply?."
- Federal Student Aid. "Borrower Defense Loan Discharge."
