The Department of Education (ED) last week released a new universal borrower defense to repayment application in accordance with new borrower defense final rules that are set to become effective July 1, 2017. The purpose of the new rules was to establish a federal standard for the conditions and time limits for asserting a defense to repayment as well as for the process for filing borrower defense claims.
Existing borrower defense rules do not specify how claims should be filed, making the process vague and confusing for borrowers. The Corinthian Colleges closure in 2015 made apparent the need for a standardized and simplified application process for borrowers.
The new form is available in multiple formats at https://studentaid.ed.gov/borrower-defense and is intended for immediate use. Beginning February 1, 2017, this universal application will be the only application ED will accept for borrower defense claims. Borrowers who complete alternative application processes after January 31 will be directed to complete the universal application for consideration of their claims.
ED reminds borrowers who attended Corinthian colleges (Everest, Heald, and WyoTech) with a first date of attendance between July 1, 2010 and Sept. 30, 2014 and who seek to make borrower defense claims to continue to follow the Corinthian-specific process.
Publication Date: 1/9/2017