Borrower Defense to Repayment Application Guide

Purpose

This template provides guidance and a supporting statement for students seeking loan discharge through the Borrower Defense to Repayment program. As of October 2024, the Department of Education has discharged over $28.7 billion for more than 1.6 million borrowers who were defrauded by their schools.

What Is Borrower Defense to Repayment?

Borrower Defense to Repayment (BDR) is a federal program that allows borrowers to seek discharge (forgiveness) of their federal student loans if their school engaged in misconduct, such as:
- Making false or misleading statements about the school or program
- Fraud or misrepresentation
- Violation of state law related to the loan or services provided

Eligibility Requirements

Eligible Loans:

• Federal Direct Loans (Subsidized, Unsubsidized, PLUS, Consolidation)
• FFEL Loans - Only if consolidated into a Direct Consolidation Loan
• Perkins Loans - Only if consolidated into a Direct Consolidation Loan

NOT Eligible:

• Private student loans
• Unconsolidated FFEL or Perkins Loans

Key Requirements:

1. You attended a school that engaged in misconduct
2. The misconduct related to your loan or the educational services provided
3. You suffered financial harm as a result
4. You filed within applicable timeframes

Types of School Misconduct

Common Grounds for BDR Claims:

1. Misrepresentation of Job Placement Rates
   - School inflated employment statistics
   - Promised unrealistic job outcomes
   - Counted unpaid internships as "placements"

2. Misrepresentation of Earnings
   - False claims about graduate salaries
   - Misleading salary surveys
   - Promises of specific income levels

3. Misrepresentation of Program Quality or Accreditation
   - False claims about accreditation status
   - Credits not transferable as promised
   - Program did not lead to licensure as claimed

4. Misrepresentation of Costs
   - Hidden fees not disclosed
   - Promised scholarships that never materialized
   - Misleading information about total program cost

5. Aggressive or Deceptive Recruiting
   - High-pressure enrollment tactics
   - False statements by recruiters
   - Targeting vulnerable populations

6. Failure to Provide Promised Services
   - No career services as promised
   - Inadequate instruction or facilities
   - Program eliminated before completion

Before Applying: Gather Evidence

Types of Evidence to Collect:

School Materials:
☐ Enrollment agreement/contract
☐ Promotional materials (brochures, flyers)
☐ Website screenshots (use archive.org for historical sites)
☐ Course catalogs
☐ Program guides
☐ Financial aid documents
☐ Career services materials

Communications:
☐ Emails with recruiters or staff
☐ Text messages
☐ Letters from the school
☐ Notes from conversations (dates, names, what was said)

Employment Documentation:
☐ Job search records after graduation
☐ Rejection letters from employers
☐ Evidence of inability to get licensed/certified
☐ Salary information (if different from what was promised)

Other Evidence:
☐ News articles about the school
☐ Lawsuits or government actions against the school
☐ Testimony from other students
☐ Social media posts from the school
☐ Videos or advertisements

Application Process

Step 1: Apply Online (Preferred)

Online Application:
- Visit: studentaid.gov/borrower-defense
- Log in with your FSA ID
- Complete the online application

Step 2: Alternative - Paper Application

Download the PDF application from StudentAid.gov and mail to:
U.S. Department of Education
P.O. Box 1854
Monticello, KY 42633

Step 3: What Happens After Filing

1. Forbearance: Your loans will be placed in forbearance (no payments required) while your application is reviewed
2. Review: The Department of Education will investigate your claims
3. Decision: You will receive a written decision
4. Timeline: Applications can take 3+ years to process

Borrower Defense Personal Statement Template

This statement should be attached to your borrower defense application to provide detailed information about the school's misconduct.

BORROWER DEFENSE PERSONAL STATEMENT

Borrower Name: [Your Full Legal Name]
Date of Birth: [DOB]
Social Security Number (last 4): XXX-XX-[Last 4]
Email: [Email Address]
Phone: [Phone Number]

School Name: [Full Name of School]
Campus Location: [City, State]
Program of Study: [Your Program/Major]
Dates of Attendance: [Start Date] to [End Date]
Graduation Status: ☐ Graduated ☐ Did Not Graduate
Total Amount Borrowed: $[Amount]

SECTION 1: SCHOOL BACKGROUND

[Provide background on the school, including:]

I enrolled at [School Name] in [Month/Year]. The school was a [for-profit/non-profit] institution that offered [type of programs].

The school's current status is:
☐ Still operating
☐ Closed (closure date: [date])
☐ Under new ownership
☐ Other: ________________________________

[If the school closed or faced legal action, describe what you know about that]

SECTION 2: MISREPRESENTATIONS AND MISCONDUCT

Please describe in detail the false or misleading statements made by the school:

A. What I Was Told BEFORE Enrolling:

Job Placement and Employment:
[Describe what the school told you about job placement rates, employment prospects, and career outcomes. Be as specific as possible - who told you, when, what exact statements were made]

Example: "The recruiter, [Name], told me during my campus visit on [date] that 90% of graduates found jobs in their field within 6 months of graduation. This was shown to me on a chart in the admissions office and repeated in the program brochure."

Salary and Earnings:
[Describe what you were told about potential earnings]

Example: "I was told that graduates of the medical billing program earned an average of $45,000-$60,000 per year. The recruiter said I could expect to make at least $50,000 within my first year of employment."

Program Quality and Accreditation:
[Describe claims about accreditation, credit transfer, licensure]

Example: "The school told me the program was accredited and that my credits would transfer to any state university. I was also told the program would prepare me to pass the [certification/licensure exam] and that graduates had a pass rate of 95%."

Costs and Financial Aid:
[Describe any misleading information about program costs, financial aid, or scholarships]

Other Promises:
[Describe any other promises or representations made]

B. Who Made These Statements:

C. How These Statements Were Made:

☐ In-person during campus visit
☐ In-person during classes or orientation
☐ By phone
☐ By email (I have copies)
☐ In written materials (brochures, website, contracts)
☐ By text message
☐ In videos or advertisements
☐ At a job fair or recruiting event
☐ Other: ________________________________

SECTION 3: THE TRUTH

Explain how you discovered the school's statements were false:

Actual Job Placement:
[Describe your actual experience finding employment]

Example: "After graduating in [month/year], I applied to over 100 jobs in my field. I received very few interviews and was told repeatedly that employers did not recognize [School Name] or that my degree/certificate was insufficient. After 18 months of searching, I found that only 3 of the 20 classmates I stayed in touch with had found jobs in the field."

Actual Earnings:
[Describe what you actually earn or were offered]

Example: "The only job offer I received paid $28,000 per year, far below the $50,000 I was promised. Most of my classmates who found work are earning between $25,000-$35,000."

Actual Program Quality/Accreditation:
[Describe the reality of the program]

Example: "I later discovered that the accreditation the school claimed was not recognized by employers or other colleges. When I tried to transfer credits to [University Name], I was told none of my credits would transfer. I also learned that the certification exam the program was supposed to prepare me for required additional coursework that the school did not provide."

How I Learned the Truth:
☐ After graduation when I couldn't find employment
☐ When I tried to transfer credits
☐ When I tried to get licensed/certified
☐ From news reports or government investigations
☐ From other students or graduates
☐ Other: ________________________________

SECTION 4: FINANCIAL HARM

Describe how you have been financially harmed:

Loan Amounts:
| Loan Type | Amount Borrowed | Current Balance |
|-----------|----------------|-----------------|
| [Direct Subsidized] | $[Amount] | $[Current] |
| [Direct Unsubsidized] | $[Amount] | $[Current] |
| [Direct PLUS] | $[Amount] | $[Current] |
| Total | $[Total] | $[Total] |

Other Financial Harm:
- Lost wages while attending school: $[Amount]
- Money spent on supplies/equipment: $[Amount]
- Money spent on certification exams: $[Amount]
- Other expenses: $[Amount]

Impact on My Life:
[Describe how the debt and the worthless education have affected your life - career, finances, family, credit, mental health]

Example: "I am now $65,000 in debt for a degree that has not helped me advance my career. My monthly loan payment is $450, which I cannot afford on my current salary of $32,000. My credit score has dropped, I had to move back in with my parents, and I have been unable to save for the future or start a family as I had planned."

SECTION 5: RELIANCE ON MISREPRESENTATIONS

Explain why you enrolled based on the school's claims:

I relied on [School Name]'s representations when deciding to enroll because:
[Explain why you believed the school and how the misrepresentations influenced your decision]

Example: "I enrolled at [School Name] specifically because of the high job placement rate and salary promises. I was a working adult looking to improve my career prospects. If I had known the truth about the school's actual outcomes, I would never have enrolled. I would have attended [community college/other program] instead, which was more affordable and had legitimate accreditation."

☐ I would not have enrolled at all if I had known the truth
☐ I would have enrolled in a different program at this school
☐ I would have enrolled at a different school
☐ I would have made different choices about borrowing

SECTION 6: ADDITIONAL INFORMATION

Schools with Group Discharges:

If you attended any of the following schools, the Department of Education may have already approved group discharges:

☐ Corinthian Colleges (Heald, Everest, WyoTech)
☐ ITT Technical Institute
☐ Marinello Schools of Beauty
☐ Westwood College
☐ Court Reporting Institute
☐ Brightwood College
☐ Argosy University
☐ Art Institutes
☐ Other school under investigation: ________________________________

Government Actions:
[If your school has been subject to lawsuits, investigations, or closure, describe what you know]

Witness Information:
[If other students or employees can corroborate your claims, provide their contact information if available]

SECTION 7: CERTIFICATION AND SIGNATURE

I certify that the statements made in this application are true and accurate to the best of my knowledge. I understand that providing false information may result in denial of my application or other penalties.

I authorize the Department of Education to contact the school named in this application, other government agencies, and third parties as needed to investigate my claim.

_________________________________
Signature

_________________________________
Printed Name

_________________________________
Date

Evidence Attachment Checklist

☐ Enrollment agreement/contract
☐ Promotional materials from the school
☐ Screenshots of school website (with dates)
☐ Emails with recruiters or school staff
☐ Job search documentation
☐ Salary information (pay stubs, offers)
☐ News articles about school misconduct
☐ Government enforcement actions
☐ Statements from other students
☐ Other: ________________________________

Sweet v. Cardona Class Action Settlement

If you submitted a borrower defense application before November 22, 2022, you may be covered by the Sweet v. Cardona class action settlement, which provides expedited processing and specific relief timelines.

Check if you're a class member: studentaid.gov/borrower-defense

While Your Application Is Pending

1. Your loans are in forbearance - No payments required
2. Interest continues to accrue - But will be waived if you're approved
3. Check application status at StudentAid.gov
4. Update your contact information if it changes
5. Respond promptly to any requests for additional information

If Your Application Is Denied

You may:
1. Request reconsideration - Provide additional evidence
2. Submit a new application - With more detailed information
3. Consult an attorney - About legal options
4. File a complaint - With the CFPB or FSA Ombudsman

Resources

• StudentAid.gov Borrower Defense: studentaid.gov/borrower-defense
• Student Loan Borrower Assistance: studentloanborrowerassistance.org
• Project on Predatory Student Lending: ppsl.org
• Legal Aid Organizations: Search for student loan help in your state

Disclaimer

This template is provided for informational purposes only and does not constitute legal advice. Borrower defense claims are complex and fact-specific. The Department of Education has final authority over applications. Consider consulting with a student loan attorney or nonprofit legal aid organization for assistance with your application.