The Evolution of the Department of Education’s Borrower Defense to Repayment Rules

UNBOUND: Reinventing Higher Education
November 7, 2016

"I usually like to start my articles with a little humor, but in the case of borrower defense to repayment, that’s a tough charge. The rediscovery of this regulation has come in the wake of devastating school closures and heartbroken students. The sudden collapse of the Corinthian College chain of schools in 2015, for example, disrupted the educational plans of thousands of students. The impact was felt most acutely in California, where the campuses were forced to close under the intense financial stress of multiple regulatory investigations and lawsuits. The publicity around the closure forced the US Department of Education (ED) to address what would happen to the federal loans of all of the impacted students. In the context of explaining the “closed school discharge” option, ED also provided potentially affected students, including those who were not attending schools that closed, with another option—the borrower defense to repayment (BDTR)."

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