Education & Student Aid · Surprise rank #223
School Misled You? Borrower Defense Can Discharge Federal Student Loans
Federal Borrower Defense to Repayment can discharge eligible federal student loans when a school engaged in qualifying misconduct that harmed the borrower.
Who
Federal student-loan borrowers who can show that their school misled them or engaged in other conduct meeting the applicable borrower-defense standard.
What to do
Start here: Use the official StudentAid.gov Borrower Defense application and collect enrollment agreements, ads, emails, job-placement claims and other evidence of the school's statements or conduct.
Eligibility: The borrower must meet the borrower-defense legal standard that applies to the loans and provide evidence supporting the school-misconduct claim.
What you get
The U.S. Department of Education can cancel covered federal loan debt tied to qualifying school misconduct.
Benefit: Discharge of some or all qualifying federal student-loan debt connected to the misconduct.
Possible value: Up to the eligible federal loan balance associated with the affected school/program.
Good to know
Important: A bad educational outcome by itself is not enough. FFEL or Perkins borrowers may need Direct Consolidation for relief under applicable borrower-defense rules.
Availability: Active; applications are being processed
Why people miss it: Borrowers may know about school lawsuits or closed-school discharge but not the separate federal claim for school deception or misconduct.
Sources reviewed: Aug 10, 2026