Department of Education is Currently Cancelling Debts for Borrower Defense to Repayment

How Does This Affect Borrowers?

Starting Friday, November 18, 2022, many Borrower Defense to Repayment applicants began receiving emails from the Department of Education confirming that their loans were scheduled for discharge. Many borrowers saw a $0.00 balance in their studentaid.gov accounts, confirming that the discharges were already taking effect.

If you attended a fraudulent college or a closed school, your student loans may qualify for full loan discharge. However, student loans from accredited institutions will remain the responsibility of the borrower. This means that some borrowers will only see a partial discharge, depending on the college they attended.

Borrowers who took out loans for a single college listed in the settlement agreement will have all their student loans forgiven.

Do Borrowers Need to Take Any Action?

If you are eligible for Borrower Defense to Repayment, you do not need to take any action to receive the discharge. You should receive an email with the subject line: “Student Loan Discharge Based on Borrower Defense Evidence.” This email will explain:

• The amount of your student loan forgiveness
• The name of the college involved
• Whether you are eligible for a refund of previous loan payments

Borrower Defense Settlement and Eligible Colleges

The final settlement agreement and the list of eligible colleges have been released in PDF format. Some smartphone browsers may not display these files, but they should be available for download.

If you attended a college listed in the Borrower Defense to Repayment settlement, you should have received an email confirming your loan discharge or can expect to receive one before January 26, 2023.