How to File a Claim to Protect a Borrower for Student Loan Forgiveness
With the Department of Education recently clearing off $ 500 million in student debt for former ITT students, the Biden administration continues to reverse many of the Trump-era policies on student debt cancellation requirements . Now that it is indeed possible that borrowers who have been defrauded by their schools will receive relief, you might want to file a lawsuit too – and to do so, you will use a borrower protection program. Here’s what you need to know.
Your debt can be forgiven based on false advertising
Using the Federal Pre-Maturity Borrower Protection Program, you can apply for a federal student loan forgiveness if your school has either defrauded your tuition fees or misled you about your education (which is more often a problem for commercial schools like ITT).
In order to receive partial or full repayment of a student loan, you must be able to prove that the school has misled you or otherwise violated your state’s consumer protection laws – and within three years after you leave school. Claims are more likely to be honored if you can document that your school:
- Guaranteed 100% employment that has never been completed
- The total cost of the program is skewed.
- Made false claims about program certification
- Made false claims about their employees’ experiences
You may not be eligible for cancellation due to poor quality course materials or faculty, disputes over your grades, or poor quality school facilities.
To file a new claim with the Borrower Protection Program, click here . If you are unsure if you qualify, please read the instructions on the application form as they provide helpful guidance in determining if you are eligible for a loan forgiveness.
Expect favorable changes in existing student debt relief programs.
While President Biden has taken steps to address the growing backlog of outstanding borrower protection requirements from the Trump presidency, more than 130,000 cases remain (including unresolved claims against ITT). However, the Ministry of Education plans to review and possibly change the rules of the borrower protection program, along with other layoffs, with public hearings starting in June.
While it is not yet clear which reforms will actually be implemented, the restrictions on waiver requirements for student loans can be expected to ease – perhaps within a year. For this reason, it doesn’t hurt to file a claim now. And if you have been denied a claim in the past, stay tuned to the borrower protection program, as it is possible that the time frame in which you can file a claim will be extended (after all, before the Trump administration’s change, the period was six years from the current three), or that previously rejected claims will be subject to revision, ultimately allowing you to qualify for a loan forgiveness.