Borrower Defense Rule Benefits Former Students of Scam Colleges

Thousands of former students with loans from unethical or fraudulent private colleges have received relief from student loan debt. These former students qualified under a Department of Education rule called “borrower defense to repayment.” This rule may apply if your school engaged in fraud or deception in order to entice you to borrow money.


To receive debt relief, you must show “that the school, through an act or omission, violated state law directly related to your federal student loan or to the educational services for which the loan was provided.”


If you are a former student of Corinthian Colleges, including WyoTech, Heald and Everest, you should fill out a Corinthian Colleges-specific application. To qualify, you must have a date of first attendance between July 1st, 2010 and September 30th, 2014.

Everyone else seeking relief under this program can apply online using this form.

Include supporting documents, such as transcripts, enrollment agreements, and registration documents. Include your course of study and the dates you attended.

You can submit a paper application here.

What happens during the review period?

You can elect to place your loans into forbearance or have collections actions on these loans stopped while the Department reviews your application. However, interest accrues while they process your claim.

If you have questions about the program, call the Dept. of Education’s Borrower Defense Hotline. Dial 1-855-279-6207, Monday through Friday from 8AM to 8PM Eastern Time.

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