The Department of Education announces the action to optimize the borrower's defense Relief process March 18, 2021 Contact: Contact: Press Office, (202) 401-1576, Press@ed.gov < Li Class = "Views-Row Views -Row-1 Views: Strange views of views of the row-row-firm-first row-last">

Today, the US Department of Education. UU (department) announced that it will streamline debt Relief determinations for borrowers with approved claims. To date, his institution was involved in a certain misconduct. The department will terminate the formula to calculate partial Relief and the adoption of a simplified approach to grant maximum Relief in accordance with regulations for borrower's defense claims approved to date. The Department anticipates that this change will ultimately help approximately 72,000 borrowers, will receive $ 1 billion in loan cancellation.

"The borrowers deserve a simplified and fair path to alleviate when they have been harmed by the misconduct of their institution," said Secretary of Education. Miguel Cardona. "A close review of these claims and the associated evidence showed that these borrowers have been harmed and we will grant a new beginning of their debt."

The current provisions in the Federal Law called "Defense of the borrower to reimbursement" or "the defense of the borrower" allows federal borrowers to seek the cancellation of their William D. Ford Direct Program (Direct Loan ) If your institution is involved in a certain misconduct. As of today, the department will ensure that borrowers with approved borrower defense claims to date have a simplified route to receive complete loan downloads. This includes borrowers with previously approved claims that received less than total loan download.

Total Relief Under the regulations, it will include:

  • 100 percent download of federal loans related to borrowers.
  • Reimbursement of any amount paid on loans, when appropriate under the regulations.
  • Requests to credit agencies to eliminate any related negative credit report. And,
  • eligibility for the help of federal students, if applicable.

    This new approach replaces a methodology announced for the first time in December 2019 to determine the amount of Relief granted to borrowers with approved claims. After completing an exhaustive review of this methodology, the department determined that it was not in an adequate determination.

    This is the first step of the department to address the borrower's defense claims, as well as the underlying regulations. The department will pursue additional actions, including re-regulation, in the future.

    The department will begin to apply this new focus today and the affected borrowers will receive department notices during the next few weeks with the following downloads. then. The updated information of the borrowers will be published at Studentaid.gov/bororteer-defense.

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