The most popular option is Public Service Loan Forgiveness. The reason is that this plan offers the biggest amount of forgiveness in the shortest period of time – tax free. It’s also open to a lot of different jobs under the umbrella of “public service”. Even for borrowers who have not yet submitted a Borrower Defense application yet, it’s not too late.

Of the 23,525 non-Corinthian borrower defense claims, over 94 percent were generated by for-profit colleges, even though for-profit schools make up only 18 percent of the outstanding loan volume in the federal student loan program. There’s a special type of student loan forgiveness targeted at people with college debt that were done wrong by their school. It’s called a “borrower defense to repayment” and allows you to request cancellation of your student loans. Even better, if you qualify, you can get back payments you made on the student loans.

HEW Secretary Caspar Weinberger recognized that because his agency was, in effect, endorsing the schools by backing the loans, the federal government bore some responsibility for the abuses. Schools that were heavily reliant on federal loans, he observed, had too strong an incentive to dilute spanish valentines day quotes their academic standards and use “exaggerated claims” to enroll students who carried the federal money with them. The importance of compensating borrowers who have been misled by predatory schools came up not long after the federal government’s first major foray into student loans.

Without something like a borrower defense program, student loans would be a one-sided contract where students—and also taxpayers—would have to pay, even when schools didn’t do the work. The Century Foundation has obtained new data from the U.S. Department of Education about nearly 100,000 “borrower defense claims”—applications for loan relief from students who maintain that they have been defrauded or misled by federally approved colleges and universities. If your school closed and you have federal student loans, they will not be automatically dismissed.

The Indian Health Service Loan Repayment Program awards up to $20,000 per year for the repayment of your qualified student loans in exchange for an initial two-year service obligation to practice full time at an Indian health program site. The other aspect of PSLF is that you must be on a qualifying student loan repayment plan. It’s also important to note that the student loan forgiveness on these plans is typically considered taxable income. However, President Biden made all loan forgiveness and discharge tax-free Federally through December 31, 2025. Learn more about taxes and student loan forgiveness here. Student loans can be a great investment in your future, or can be a huge burden if not fully thought out or abused.

What you provided here would absolutely NOT qualify you for BDAR. BDAR is about proving that the school lied to you and convinced you that their program was much more valuable than it truly was. Every servicer has a slightly different way of processing these applications, so once you’ve submitted your paperwork, you’ll need to listen to them and follow their instructions in order to get the discharge approved. There’s a very good chance that anyone who applies for BDAR while the program is still in existence will be grandfathered in and allowed to receive loan forgiveness, even if the program gets cut. Lowest rates are reserved for the most creditworthy applicants and will depend on credit score, loan term, and other factors.

Once approved for student loan discharge, you’ll be off the hook for any repayment going forward. First, fill out the Closed School Loan Discharge Application and send it to your student loan servicer. Secondly, ask your loan servicer about the application process for getting your student loans discharged.