Get Out of Debt Guy - Steve Rhode

Borrower Defense to Repayment Backlog is Obscene


Politico is reporting on information out yesterday on claims processed by the Department of Education under the Borrower Defense to Repayment program to help discharge student loan debt obtained under school fraud.

“The Trump administration is providing new numbers that show it’s making some progress in expunging the federal student loan debt of the 16,452 borrowers whose debt relief claims were already approved by the Obama administration. As of Monday, 7,085 of those previously-approved claims, totaling approximately $92 million, have been fully discharged, according to the Education Department. Another 7,358 “are at the servicer and in the pipeline to be discharged shortly,” and 2,010 approved claims “are actively being worked on” and will be sent to the loan servicer for discharge “shortly,” the department said in a statement.

Aside from the already-approved claims, the Education Department also has a backlog of 64,301 borrower defense to repayment claims received during the Obama administration that have not yet been adjudicated. Those claims “will be reviewed under the current [borrower defense to repayment] regulations,” the department said on Monday.”

The phrase “train wreck” comes to mind.