U.S. Department of Education

Second Circuit Litigation Threatens to Further Confuse Regulatory Standards Applied to Borrower Defense Applications

January 9, 2024

By Seth F. Gilbertson and Alison K. Roach

The Second Circuit Court of Appeals released a new decision in the NYLAG v. Cardona et al. case that may have implications for the everchanging legal and regulatory environment of Borrower Defense to Repayment (BDR) claims. Here are the key takeaways from this latest ruling:

Read More >> Second Circuit Litigation Threatens to Further Confuse Regulatory Standards Applied to Borrower Defense Applications

Colleges and Universities Experience a Surge of Borrower Defense to Repayment Claims

October 17, 2023

By Seth F. Gilbertson and Alison K. Roach

Over the past several months, institutions of higher education (IHE) have seen an influx of Borrower Defense to Repayment (BDR) applications from former students.

Student loan borrowers with federal student loans can apply for a BDR loan discharge through the U.S. Department of Education (ED). Generally, in order to be successful, a borrower must demonstrate that they enrolled in an IHE or continued to attend an IHE based on misleading information or other related misconduct covered by the regulation, such as breach of contract.  

Read More >> Colleges and Universities Experience a Surge of Borrower Defense to Repayment Claims