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What is the "Defense to Repayment*"?
*(Note that as of 09/10/2015, the Defense to Repayment only applies to Federal loans and NOT private loans. Parent PLUS loans are included, as they are federal loans.)
The "Defense to Repayment" (sometimes referred to as DtR) is a statute buried within the U.S. Higher Education Act of 1965 that states that the Department of Education is authorized to allow students to get out of paying back their federal student loans if they can prove that they faced “acts or omissions of an institute of higher education”. Simply stated, if your school lied to you about your job prospects, anticipated annual salary, or anything else that would have led to your decision about deciding that their higher education courses were worth the investment, then you may be able to write that debt off entirely.
The "Defense to Repayment" (sometimes referred to as DtR) is a statute buried within the U.S. Higher Education Act of 1965 that states that the Department of Education is authorized to allow students to get out of paying back their federal student loans if they can prove that they faced “acts or omissions of an institute of higher education”. Simply stated, if your school lied to you about your job prospects, anticipated annual salary, or anything else that would have led to your decision about deciding that their higher education courses were worth the investment, then you may be able to write that debt off entirely.
How can I fill out my "Defense to Repayment"?
In early 2017, the government finally created their own Defense to Repayment form. Before that, the Debt Collective created an application that was sent directly to the Department of Education, essentially doing the government's job for them.
Originally designed for students who were wronged by Corinthian College and its affiliates, this application is now widely being used by many students who've been wronged by private schools.
Feel free to visit the link below to begin filling out your Defense to Repayment application. You will be asked a series of questions relating to how you think you were wronged by your school. You will also be asked to provide "proof" of your experiences to show how you were wronged. All of this is very important information that is needed to assess your particular situation. The more information and proof that you can provide, the greater the chance of your federal loans being discharged.
Originally designed for students who were wronged by Corinthian College and its affiliates, this application is now widely being used by many students who've been wronged by private schools.
Feel free to visit the link below to begin filling out your Defense to Repayment application. You will be asked a series of questions relating to how you think you were wronged by your school. You will also be asked to provide "proof" of your experiences to show how you were wronged. All of this is very important information that is needed to assess your particular situation. The more information and proof that you can provide, the greater the chance of your federal loans being discharged.
Click here to fill out your defense to repayment
"Defense to Repayment" Templates-
| dtr_template_2016.docx |
What information should I have prepared before filling out my "Defense to Repayment"?
Some information you should have available in preparation for filling out your "Defense to Repayment" includes:
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- Improper charges to your student account
- Aggressive recruiting practices by your school(s) - Fabricated graduation statistics given by your school(s) - Fabricated job placement and wage statistics given by your school(s) - School housing overcharges - Poor quality/lack of supplies (computers, software, utensils, etc.) provided by your school(s) - Poor teaching practices by school faculty, such as "Watch this YouTube video to learn" - Anything else that you can think of that would help strengthen your claim |
Be sure to supply all of this information, and more, when filling out your "Defense to Repayment". Otherwise, your request will be delayed and the Department of Education will eventually contact you and request this information to further investigate your claim.
*(Note - If you plan to mail your "Defense to Repayment" to the Department of Education, please be sure to send only COPIES and not your original documents. Otherwise you probably will not get back anything you send.)
*(Note - If you plan to mail your "Defense to Repayment" to the Department of Education, please be sure to send only COPIES and not your original documents. Otherwise you probably will not get back anything you send.)
What do I do after submitting my "Defense to Repayment"?
Congratulations on submitting your "Defense to Repayment"! Now you play the waiting game. You should receive a response to your Defense to Repayment within a few weeks, or, you might not. The process is still new, so the Department of Education might miss your application or take a long time to get to it/respond. There are many other students applying as well, so be patient.
You might receive a call or letter from your loan holders too, or, you might not. Some students have reported that without warning, their federal loans were placed into forbearance for a year. After contacting their lender did they find out what had happened, that their forbearance was related to their Defense to Repayment application.
Currently for those who apply for a Defense to Repayment, the federal loans that a student was given while attending a private school will be put into forbearance for a year while the Department of Education "investigates" your case. You will still be expected to pay interest on those particular loans while they look into your DtR submission, but you are not required to make your regular monthly payments for up to one year. After that year of forbearance ends, students have stated that they're being told their payments will pick up where they left off. There has not been any information on what happens if the Department of Education does find fault in the school you attended, but it is assumed that your federal loans would be abolished.
If you happen to come across more evidence or information for your claim, you can send it to the Department of Education and say that you'd like to add it with the rest of your documentation. You can also just fill out your "Defense to Repayment" again and include this new information. Be sure to state somewhere that you're adding more information to your claim.
You might receive a call or letter from your loan holders too, or, you might not. Some students have reported that without warning, their federal loans were placed into forbearance for a year. After contacting their lender did they find out what had happened, that their forbearance was related to their Defense to Repayment application.
Currently for those who apply for a Defense to Repayment, the federal loans that a student was given while attending a private school will be put into forbearance for a year while the Department of Education "investigates" your case. You will still be expected to pay interest on those particular loans while they look into your DtR submission, but you are not required to make your regular monthly payments for up to one year. After that year of forbearance ends, students have stated that they're being told their payments will pick up where they left off. There has not been any information on what happens if the Department of Education does find fault in the school you attended, but it is assumed that your federal loans would be abolished.
If you happen to come across more evidence or information for your claim, you can send it to the Department of Education and say that you'd like to add it with the rest of your documentation. You can also just fill out your "Defense to Repayment" again and include this new information. Be sure to state somewhere that you're adding more information to your claim.
Contact information for the Department of Education:
Department of Education
PO Box 194407
San Francisco, CA 94119
Email: FSAOperations@ed.gov
Borrower Defense Hotline: (855) 279-6207
PO Box 194407
San Francisco, CA 94119
Email: FSAOperations@ed.gov
Borrower Defense Hotline: (855) 279-6207
Summary:
1.) Prepare information on why you feel your private school defrauded you, and gather all documentation that can help prove this fraud.
2.) Apply for your Defense to Repayment.
3.) After a week, look at your lender accounts related to your federal loans that are tied to the private school you attended.
4.) Continue to monitor these accounts for at least a month to see if any changes take place.
5.) If changes do take place (your federal loans are put into administrative forbearance), contact your lender(s) to verify why the changes have been made.
6.) If changes do not occur after a month, submit your Defense to Repayment again (they might not have received it the first time for whatever reason).
7.) If you get contacted by your lender or the Department of Education, be sure to get all information from them in writing. Ask questions if you have them to make sure that you fully understand what is going on with your particular case.
8.) If your loans are put into administrative forbearance for a year while your case is being "investigated", consider paying the interest on those loans, as it will continue to accrue even during your forbearance.
9.) Please be aware that you might be contacted by the Department of Education before your loans are put into administrative forbearance, as they might need more information, proof, or clarification from you.
10.) If your loans are put into administrative forbearance, continue to monitor your accounts, and keep up-to-date on your case as a whole. Don't hesitate to contact your lenders or the Department of Education for updates.
11.) If your loans are not put into forbearance for some reason, you can always reapply. Try to provide the information missing/required that might have denied your application for Defense to Repayment.
12.) If your loans are in administrative forbearance for a year, and nothing happens, your loans might go back into repayment status. If this happens, then you will have to reapply for DtR to put your loans back into administrative forbearance. Some students have reported that their DtR reset after a year, but be sure to monitor your accounts in case this doesn't happen for you.
13.) Do not hesitate to update/resubmit your DtR if you happen to come across new information, or would like to add more information to your originally submitted DtR. Be sure to reference your previously submitted DtR and mention that you're updating your original submission with more content.
2.) Apply for your Defense to Repayment.
3.) After a week, look at your lender accounts related to your federal loans that are tied to the private school you attended.
4.) Continue to monitor these accounts for at least a month to see if any changes take place.
5.) If changes do take place (your federal loans are put into administrative forbearance), contact your lender(s) to verify why the changes have been made.
6.) If changes do not occur after a month, submit your Defense to Repayment again (they might not have received it the first time for whatever reason).
7.) If you get contacted by your lender or the Department of Education, be sure to get all information from them in writing. Ask questions if you have them to make sure that you fully understand what is going on with your particular case.
8.) If your loans are put into administrative forbearance for a year while your case is being "investigated", consider paying the interest on those loans, as it will continue to accrue even during your forbearance.
9.) Please be aware that you might be contacted by the Department of Education before your loans are put into administrative forbearance, as they might need more information, proof, or clarification from you.
10.) If your loans are put into administrative forbearance, continue to monitor your accounts, and keep up-to-date on your case as a whole. Don't hesitate to contact your lenders or the Department of Education for updates.
11.) If your loans are not put into forbearance for some reason, you can always reapply. Try to provide the information missing/required that might have denied your application for Defense to Repayment.
12.) If your loans are in administrative forbearance for a year, and nothing happens, your loans might go back into repayment status. If this happens, then you will have to reapply for DtR to put your loans back into administrative forbearance. Some students have reported that their DtR reset after a year, but be sure to monitor your accounts in case this doesn't happen for you.
13.) Do not hesitate to update/resubmit your DtR if you happen to come across new information, or would like to add more information to your originally submitted DtR. Be sure to reference your previously submitted DtR and mention that you're updating your original submission with more content.
Files
| Sweet vs DeVos - Settlement Hearing Chat---10-01-2020.pdf |
More information about the "Defense to Repayment"
10/01/2020 - Defrauded Students Slam DOE's Loan Relief 'Blanket Denial'
10/01/2020 - Student Borrowers to Judge: Department of Education Can't Be Trusted to Process Borrower Defense Claims Fairly
08/21/2020 - Law Enforcement Investigations and Actions Regarding For-Profit Colleges
- Sweet vs DeVos lawsuit relating to DtR's
01/09/2017 - Changes To The Defense To Repayment Application
- The Defense Against Repayment Provision
10/01/2020 - Student Borrowers to Judge: Department of Education Can't Be Trusted to Process Borrower Defense Claims Fairly
08/21/2020 - Law Enforcement Investigations and Actions Regarding For-Profit Colleges
- Sweet vs DeVos lawsuit relating to DtR's
01/09/2017 - Changes To The Defense To Repayment Application
- The Defense Against Repayment Provision
