Filing a borrower defense now may be your best bet for full student loan forgiveness.

Borrower’s Defense for Reimbursement (BDR) is a little-known student loan forgiveness program that I wrote about a few years ago (BDR). If an applicant can prove that their school deceived students about job opportunities in order to persuade them to enroll, they will be forgiven of all of their student loan debt with no impact on their federal income tax.

In 2016, the Obama administration’s Department of Education issued regulations defining who would be eligible for BDR loan forgiveness under the Obama administration. And it was widely accepted that those who asked for a full or partial pardon if they could show that their school had been at fault would have a reasonable chance of obtaining it.

However, under President Trump, Betsy DeVos, the department’s secretary, has made it more difficult to obtain a BDR pardon.

People claimed that DeVos postponed the implementation of the new BDR rules and postponed the processing of the old ones. New regulations issued by the department in 2019 made it harder for injured students to receive compensation and harder for predatory schools to make false claims. To override Trump’s veto, legislation was passed by Congress and signed into law.

Education Department Secretary Miguel Cardona is using BDR today to provide targeted student loan relief. – According to a ministry announcement on March 18, 2021, this will change how relief is determined for students who have been misled by their institutions.

Due to allegations that many for-profit colleges misled students about their job prospects, the department used BDR to write off thousands of student loan debts. Those who met the conditions had their federal student loans canceled in full.

A BDR application must be submitted through the Ministry of Education website to be considered. In most cases, the app asks for information about where you went to school and what kind of misbehavior was going on there.

Misrepresentations of selectivity, educational services, career services, and post-graduate job prospects are all included in this category of misinformation. Documents such as marketing materials, correspondence with school officials or third parties, and other outside sources are also requested in the application (such as law school ranking magazines). Their student loans are on hold while the application is processed.

Which of the following people has the best chance of being eligible for BDR assistance? Law schools were suspected in the mid-2000s of releasing false post-graduation employment statistics to boost their US News rankings. As a result, only a small percentage of graduates from lower-ranking law schools have been hired by high-paying firms.

Due to the widespread publication of this information in reputable publications, including the ABA Journal of Bar Exams and US News & World Report, many law schools have been compelled to provide more information to students researching their options. .

Other law schools have been forced to close or are under investigation or legal action has been taken against them.

BDR relief may be available exclusively to those who attended a for-profit law school decades ago. It is possible to get compensation from your school if you can prove that it misled you about your job prospects after graduation and that your financial situation was affected. However, recent graduates may have more difficulty showing that they were created due to improved law school disclosures.

Due to the upcoming midterm elections, the federal government is unlikely to cancel everyone’s student loans anytime soon and will likely extend the student loan repayment moratorium until 2023. Students Who Have Been Duped by their schools can now enjoy full discharge thanks to the increased use of BDR by the Ministry of Education.

People who can show their schools cheated on them may have the best chance of getting BDR relief under this administration, but not everyone will be eligible.