The Borrower Defense to Repayment Application Was Denied for Failure to State a Claim

Question:

Dear Steve,

I have a friend who had his Borrowers Defense To Repayment application denied by the Department of Education for FAILURE TO STATE A LEGAL CLAIM on the multiple allegations stated within the BDTR.

My friend is not a lawyer and the school has a history of fines paid for deceptive marketing practices/fraud in the millions through past years. His claims included being lied to about the school’s credits being able to be transferred to any public school, which he found out later was a lie due to the school having national accreditation not regional, received false information on job placement and graduation statistics, was given exaggerated salary expectations among other allegations.

The question that needs an answer is-WHAT IS THE NECESSARY LANGUAGE THAT SHOULD HAVE BEEN STATED AS TO EACH ALLEGATION IN ORDER TO MEET THE OBVIOUS REQUIREMENT OF STATING A LEGAL CLAIM. Thank you

Charles

Answer:

Dear Charles,

The Department of Education has been fighting the granting of forgiveness and this has been the subject of multiple lawsuits.

I’ve heard multiple times lately that people are getting this type of denial.

If your friend feels he has a reasonable argument for fraud and forgiveness then I think the appropriate thing he needs to say is “It’s nice to meet you and thank you for being my attorney.”

There is no logical way to deal with the Department’s own use of attorneys to look for reasons to deny claims than for a consumer to hire a local attorney licensed in their state, to provide them with legal advice and representation.

The investment in a consultation for a local attorney to assist is going to be small compared to the forgiveness when or if awarded. One place to look for such legal help is here.

There is absolutely no general advice anyone can give you that is going to be the most applicable to your friend’s situation. Tell him to get specific advice from an attorney to deal with what are the most appropriate legal claims to state in his situation. That’s the smart move.

Steve Rhode Debt Coach and Author

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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