Borrower Defense to Repayment

On July 16, 2016, the US Department of Education (ED) released a massive Notice of Proposed Rulemaking describing how it plans to refocus the rules governing the Borrower Defense to Repayment (BDTR) provision of the Higher Education Act (HEA). As predicted, ED aims to completely rewrite the current sparse regulations to open up new avenues for student borrowers to assert a defense to repaying their loans, to allow ED to seek reimbursement for such claims from the affected institutions, and to rewrite the institutional financial responsibility rules to require many more schools to post letters of credit, ostensibly to assure ED of their capacity to pay claims to the Department and students.

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Related Contacts
Jay Vaughan Partner, Washington, DC
Katherine Lee Carey Special Counsel, San Diego
Jonathon Glass Senior Counsel, Washington, DC
Mike Goldstein Senior Counsel, Washington, DC
David Mills Partner, Washington, DC
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Higher Education Education