Overview
Discharge Due to Borrower Defense is for federal student loans when a school engaged in fraud, material misrepresentation, or other misconduct that directly affected your decision to enroll or take out loans. The U.S. Department of Education (Federal Student Aid) administers the program; file a claim online and submit supporting evidence at studentaid.gov/borrower-defense (U.S. Department of Education).
Step-by-step: How to file
- Confirm your loans are federal
- Borrower Defense applies to federal student loans only. Private student loans are not eligible. Check your loans at NSLDS or on your loan servicer account.
- Gather evidence
- Collect enrollment agreements, program brochures, emails and ads, placement-rate claims, employer communications, transcripts, accreditation notices, and receipts for tuition or borrowed funds.
- Save screenshots, dated emails, and statements from classmates or instructors when possible.
- Complete the official claim form
- File at Federal Student Aid: studentaid.gov/borrower-defense. The portal walks you through the form fields and attachments. Keep copies of everything you submit.
- Provide a clear narrative and chronology
- Write a concise, factual description of what the school did, when it happened, and how it affected your choices. Dates and specific claims (e.g., a quoted job-placement rate) strengthen a claim.
- Submit and monitor your claim
- After submission, monitor your Federal Student Aid account and your loan servicer’s communications. Respond quickly to requests for more information.
Who is eligible
- Borrowers who took out federal student loans and can show their school engaged in misconduct that influenced enrollment, continued enrollment, or loan use may be eligible.
- Misconduct can include false advertising, forged transcripts, misrepresented job-placement rates, failure to deliver promised training, or revocation or loss of accreditation that made credentials worthless.
What to expect after filing
- Processing times vary; many claims take several months. The Department may grant full discharge, partial discharge, or deny the claim.
- If approved, loans can be canceled and recent payments may be refunded. If your loans were in default, a successful claim typically leads to removal of default status, but check with your servicer.
- A denial letter will explain reasons and steps to appeal. You can submit new evidence or seek legal help.
Common mistakes to avoid
- Filing without organized evidence — vague or unsupported claims are harder to win.
- Assuming private loans will be covered — they generally are not.
- Missing deadlines to respond to requests for information — delays can hurt your case.
Professional tips
- Start by downloading your NSLDS loan history and any program disclosures from your school.
- Keep a single organized folder (digital and physical) with dated items and a one-page timeline.
- If you have complex legal issues (e.g., state licensing consequences), consult an attorney experienced in student loan law.
Interlinked resources on FinHelp
- Read our primer on Borrower Defense to Repayment for background and eligibility details.
- Learn how claims are assessed at How Borrower-Defense Student Loan Claims Are Evaluated.
- See related options when a school closes in Closed School and Borrower Defense: Paths to Discharge.
Tax and credit considerations
- Under current federal law (American Rescue Plan provisions effective through 2025), many forms of student loan forgiveness and discharges are treated as non-taxable for federal income tax purposes; state tax rules may differ. Verify current IRS guidance or consult a tax professional for your situation.
- A successful discharge can improve your credit if loans were delinquent or in default, but check credit reports after the discharge posts.
When to get help
- If your claim is large, your evidence is complex, or you face denials, seek a student-loan attorney, legal aid clinic, or experienced financial counselor.
- Avoid paid services that promise guaranteed outcomes; legitimate help will explain risks and costs upfront.
Sources and disclaimer
Sources: U.S. Department of Education — Federal Student Aid (studentaid.gov/borrower-defense); National Student Loan Data System (NSLDS).
This article is educational only and does not constitute legal or tax advice. For personalized guidance, consult a qualified attorney, tax advisor, or federally certified student loan counselor.
