Students Who Were Defrauded Await Debt Relief

What is ‘Borrower Defense to Repayment’?

In the Obama-era,the borrower defense to repayment rule was introduced as a way to help with student debt relief by those who were defrauded by their school. Students have been seeking this loan forgiveness since 1995, But Obama make the process easier.

 

DeVos is handling debt relief for defrauded students

At the time Devos was proposing making BDR even harder to get into, students were not affected. She promised use that we will see this change within the next several weeks. As of recent no applications for the BDR are being processed. When Obama was in the office, he forgave nearly 28,000 loans. Since trump has been in office, he has received over 25,000 claims but none has been approved.

 

Several aspects of the department of handling BDRM has been criticized because they went from 30 employees to 6. On top of that, they have to go through 1,000 spreadsheets to track data. This could harm borrowers by negatively affecting their credit scores.

 

We suggest they should take a look at:

 

  • Resuming consideration of whether additional categories of claims qualify for discharge

 

  • Closing out claims flagged for denial

In a memo A Wayne Johnson said that they were looking to improve the BDR process. In addition to that, he also stated that the department had authorized an “interest credit” for those whose claims are denied more than a year after submission and that approval for some Corinthian Colleges claims “is imminent.”

 

What should defrauded students do?

Here are some steps to can take in order to lower your student loan debt.

 

  • Contact your student loan lender to discuss your options available to help lower your debt.
  • If you think your school made fraudulent claims , start the BDR process.
  • If your loan payments are to high, consider an income-driven repayment plan or refinancing
  • Look into alternative student loan forgiveness programs.

If you need help with student loan forgiveness, there are options available!

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