Answer:
How borrower repayment protection works
Borrower repayment protection includes proving that the university or college somehow defrauded the student into taking out student loans. If the university defrauded a student in such a way that he or she took out student loans, he or she may be a good candidate for loan repayment.
Some examples of fraud include falsifying employment data, total tuition costs, successful credit records, and which degree programs will be offered. This is part of what happened to students who attended Corinthian Colleges, a network of schools that were found guilty of lying to students. More than 15,000 students have paid off their federal loans as a result, according to the latest Department of Education report.
Only direct loans are eligible for fraud repayment, so graduates with Perkins, unsubsidized Stafford, Parent PLUS, Stafford, or Federal Consolidation loans cannot repay their loans.
Student loan lawyer Jay Fleischman said that a successful discharge "can result not only in forgiveness of the unpaid balance, but in the recovery of any money you previously paid and the removal of any negative information from your credit report related to the loan."
However, according to Fleischman, "personal injury or civil rights claims" are not grounds for paying off your federal student loans. It's important to note that just because a lawsuit was filed against a college or university doesn't mean anything for your student loan debt. You personally need to examine your situation and go through the process if you think you may be eligible for borrower protection to maturity.
Students who wish to pay off their loans must submit some required information to the Department of Education, including:
What laws did the school break?
when you were a student
Which training program were you enrolled in
Your Contact Details
How Alleged School Fraud Influenced Your Decision to Take a Student Loan
Learn more about what you need to file a claim here. Once a claim is filed, the loans will be put on hold for up to 12 months, where they will still accrue interest.
The process of paying off your loans is a serious legal matter and you may need additional help to get through it.
“You will need to prove to the government not only that your claim meets the state standard, but also that the statute of limitations for filing such a claim has not expired,” Fleishman said. "You'll also want to understand the implications of paying off your federal student loans on your taxes and whether you may be taxed on forgiven debt."
Step-by-step explanation: