A Video Look Into Student Loan Borrower Defense to Get Loans Forgiven

What happens when you get taken in by a misleading pitch, or a deceptive action leads you to make decisions you would otherwise not have made? You get hurt… probably mad, and even depressed. But what if you were taken for such a ride that your future is screwed for many years to come? What if the situation is bad enough that you have to pay for the con for years into the future?

Welcome to the world of many former, and even present, college students.

The strides being made with regard to protecting students from being hurt by schools and lenders is ever so slow. But one big change has come about from some private colleges closing up last year. Corinthian and Heald college campuses that were sued and shut down (primarily in California), were found to use practices that were unfair and deceptive. And because of what the California Attorney General uncovered in their investigation, federal agencies dusted off a crusty old mold covered law from the 90’s, that virtually no one knew about until now, designed to discharge federal loans meeting specific criteria.

Borrower defense options for federal student loans may apply to your unique set of circumstances. What is so special about submitting your borrower defense claim, and how can you benefit? Watch this video interview I did with Steve Rhode, who covers student loan debt relief options more than anyone I know, and learn what you need to know.

We cover a ton of details about how to submit your student loan borrower defense claim and why.

The defense to repayment claim works with federal student loans, you have other options you can pursue to resolve private student debts.

Filing for borrower defense requires that you raise a state law claim. All states have their own version of UDAAP laws (Unfair Deceptive Acts and Practices). This is a required element to if you submit a borrower defense claim. Make sure some element of your claim would stand up under these, or other state laws that would cover your relationship with your college.

See also  19 States Sue to Keep Borrower Defense to Repayment Rules in Force

There may be a temptation to seek relief using the borrower defense angle even if you are stretching to fit your situation to one that would qualify for relief. It is a huge carrot to want to bite into when your loans could be forgiven if you qualify. Your defense to repayment could even result in money being refunded to you. But be careful, your loans will automatically go into forbearance and will grow with interest until your claim is reviewed.

Steve and I cover the details at length in the video. If you have questions about your specific set of circumstances, you can post them in the comments to the video and I will respond.

3 thoughts on “A Video Look Into Student Loan Borrower Defense to Get Loans Forgiven”

  1. I should also mention the fact that the principle has nearly quadrupled at last count (if I remember correctly) since I took the loan out and the payments are out. of. this. world. I literally will never be able to pay it off at this rate unless I win the lottery and I will never be able to do anything like own my own home, purchase a car without a co-signor or do anything else of note that a college education was supposed to afford me.

  2. Hello Steve,

    Back in 2005, I was in danger of not being able to finish school if I didn’t take out another loan. As a family, we decided to take out a Sallie Mae loan based on a flier that I received in the mail. I applied and they said that I couldn’t be approved unless I had a co-signor. Fine, no worries, I totally get it. I was a student, for crying out loud. I worked in the Student Loan office at the time and it was common practice to have points of contact. I knew this was a private loan, so a co-signor seemed to be to be logical.

    Things progress and the loan is approved, but Sallie Mae takes my name off everything and puts the entirety of it in my mother’s name. A student loan with me as the student has now been put entirely in my mother’s name…and she isn’t a student. This didn’t become apparent until they’d already distributed money and we were stuck.

    Is there anything I can do about this? A specific type of lawyer I can call? The information out there is staggering and I have no idea where to even start.

    Thanks in advance for any help you can provide.


Leave a Comment