How the Department of Education reviews borrower‑defense claims

When you file a borrower‑defense claim, the U.S. Department of Education (ED) follows a structured review to decide whether loans should be partially or fully discharged. The ED looks for evidence that a school engaged in misrepresentation, violated state law, or otherwise made the loan unenforceable. (see: Borrower Defense — Federal Student Aid).

Key stages in evaluation:

  • Intake and initial review — ED checks eligibility (federal loans only; private loans not eligible) and whether your claim is complete.
  • Evidence gathering and investigation — ED examines documents you submit and may request school records or third‑party data. ED sometimes uses school‑level reviews or group determinations when many borrowers report the same practices.
  • Decision and relief — If approved, relief can be full or partial loan discharge, and may include refunds of amounts paid. Denials include an explanation and appeal options.

(ED guidance and procedural updates are posted at studentaid.gov/borrower-defense; for consumer protections and filing help see the CFPB’s student loan resources at consumerfinance.gov/learn-about/student-loans/).

What evidence matters most

ED evaluates the totality of facts. The strongest claims present clear, contemporaneous documentation plus a consistent narrative. Useful evidence includes:

  • Enrollment agreements and contracts.
  • Advertising, recruitment emails, and web pages that made specific promises (e.g., job placement rates, accreditation statements).
  • Communications with admissions or financial aid staff (texts, emails, call logs).
  • Transcripts, diploma documents, and records showing program changes or cancellations.
  • Employer or licensing board records showing course credits or credentials were not accepted.
  • State agency findings, lawsuits, or accreditors’ reports that corroborate institutional misconduct.

Tip from practice: gather timestamped copies (screenshots saved as PDFs, exported emails) and a short chronology explaining each document’s relevance.

Common legal theories ED applies

  • Misrepresentation: the school made false or misleading statements that induced enrollment.
  • Breach of contract: the school failed to deliver promised services or program features.
  • State law violations: conduct that violates state consumer‑protection statutes may support a claim.

ED evaluates whether the school’s actions were material — that is, significant enough that a reasonable borrower would have chosen differently.

Process realities and timing

Processing times vary. Some individual claims are resolved in months; complex or group claims can take longer. ED has used both individual adjudication and consolidated school‑wide reviews to handle large groups of applicants. Expect requests for additional information; timely, complete responses speed review.

Important eligibility notes

  • Only federal student loans (e.g., Direct Loans, FFEL in some cases) are typically eligible.
  • Private student loans are not covered by borrower defense.
  • Consolidation can affect eligibility — consolidating a loan may change which loans (or periods of attendance) can be included in a claim. Check ED guidance before consolidating.

Practical steps to strengthen a claim

  1. Assemble a document packet: enrollment agreements, promotional materials, emails, payment records, and any state or accreditor findings.
  2. Write a clear timeline: state when and how misrepresentations occurred and how they affected your decision.
  3. Submit attachments and keep originals: ED accepts uploads through its portal; keep backups.
  4. Consider legal help for complex cases — attorneys or nonprofit advocates experienced in borrower‑defense can identify additional evidence and procedural defenses.

For broader context on forgiveness pathways and how eligibility rules interact, see our practical guide to student loan forgiveness eligibility.

Common mistakes to avoid

  • Relying on memory alone; documentary proof is critical.
  • Missing deadlines or failing to respond to ED requests.
  • Including private loan balances in a borrower‑defense claim (private loans aren’t eligible).

Frequently asked questions

  • Which loans qualify? Only federal student loans; check your loan type in the Federal Student Aid portal.
  • How long will ED take? Timing varies by claim complexity; respond promptly to information requests.
  • Can I appeal a denial? Yes — ED provides appeal or reconsideration procedures; consult ED’s borrower‑defense guidance for current steps.

Next steps and resources

Professional disclaimer: This article is educational and not legal advice. For case‑specific guidance, consult a qualified attorney or financial counselor experienced in borrower‑defense matters.

Sources

Author note: In my finance practice I’ve helped borrowers organize evidence and prepare timelines that clarified their claims and reduced processing delays.