NASFAA Members Increasingly Concerned About Rise in Borrower Defense Claims
October 4, 2023
Since this Summer, NASFAA has heard from an increasing number of members that their institutions have received a growing number of borrower defense claim notifications, leading to significant confusion as to how schools should handle these filings due to the rollout of regulatory updates, ongoing legal challenges, and a lack of communication from the Department of Education (ED).
As a reminder, borrower defense is a long-existing, but previously rarely-used, provision of law [Higher Education Act, Sec. 455(h)] that enables students who have been the victims of certain types of institutional misconduct to have their federal student loans forgiven.
Below are some of the most common questions NASFAA has been hearing from member institutions.
