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There are a few exceptions to this general process which still appear to apply, including: 1. The Department created a streamlined process and has provided specific information for some former Corinthian school borrowers.Whether you can use this streamlined process depends on when you attended the school.” If you previously defaulted on your federal student loan(s) and have entered a rehabilitation plan, the Department advises you to contact the collection agency you have been working with to help you determine whether there may be any negative consequences if you choose to enter stopped collections status.Initially, if you choose forbearance or stopped collection, it will affect all of your federal student loans owned by the Department, including loans that are not eligible for borrower defense cancellation.Despite this announcement, the government has continued to delay evaluation of borrower defense applications.In June 2019, defrauded former for-profit college students filed a lawsuit seeking to force the Department to follow existing law and issue the debt relief to which the former students are entitled.These borrowers may want to do this because under current law, Direct consolidation loans are eligible for borrower defense relief.This could change if the rules change in the future.
The Department is supposed to provide a pre-determination in these circumstances of borrowers’ eligibility for relief. Stay tuned and check the Department’s website on borrower defense for current information about seeking relief from the Department.You can raise borrower defense claims (also known as “defense to repayment” or “DTR”) whether or not you are in default on the loans.If your borrower defense application is successful, the government will forgive/cancel all or part of your outstanding federal student loan debt and you also may be reimbursed for amounts you have already paid on those loans.In October 2017, the Department announced another delay.The Project on Predatory Student Lending and Public Citizen sued the government to stop the delay.