The One Big Beautiful Bill: Borrower Defense to Repayment Edition
Scott Z. Goldschmidt and Aaron D. Lacey
July 24, 2026
Buried within the more than 800 pages of the One Big Beautiful Bill Act (“OBBB”) are several significant provisions affecting institutions of higher education and the broader higher education sector. Over the next few weeks, Thompson Coburn’s Higher Education Practice, in conjunction with our Lobbying & Policy team, will break down some of the most important changes through blog posts, webinars, and videos. First up is our review of the changes impacting the Borrower Defense to Repayment regulations.
BDR Overview
As regular REGucation readers know, under the Higher Education Act (“HEA”) and its implementing regulations, students may seek discharge of their federal Direct Loans (or Direct Consolidation Loans) by filing a claim with the U.S. Department of Education (the “Department”) and asserting that their institution engaged in certain misconduct related to the origination of their loans or the provision of educational services. This process is referred to as a “Borrower Defense to Repayment” or “BDR” claim.
