Borrower Defense Discharge — Cancel Federal Loans if the School Lied or Broke the Rules
What Is It?
Borrower defense can discharge qualifying federal student loans if the school misled the borrower or engaged in misconduct covered by the program rules.
Why It Helps
- It targets school misconduct, not just borrower hardship
- It can reduce or erase federal loan balances from a bad program
- It is especially useful when school advertising and reality were wildly different
What Most People Don’t Know
- This claim is about what the school did, not whether repayment is hard.
- Marketing claims, job-placement promises, and transfer-credit claims can all matter.
- Saving screenshots and enrollment materials can make or break the case.
Good To Know
- School-specific evidence matters
- Direct Loans are the main fit
- Keep catalogs, emails, recruiter promises, and accreditation/job-placement claims