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BRIEFING: Responding to Student Borrower Defense to Repayment (BDR) Claims

On November 1, 2022, the U.S. Department of Education, Office of Postsecondary Education, published a new Final Rule governing Institutional Eligibility Under the Higher Education Act of 1965, as Amended, including a new standard and process for reviewing Borrower Defense to Repayment (BDR) claims. The Final Rule allows federal student loan borrowers to apply for relief from their student debt if their college or university misled them or violated certain state laws. The Final Rule became effective on July 1, 2023; however, in August, the Fifth Circuit granted a national injunction in Career Colls. and Schs. of Texas v. U.S. Dep’t of Educ. enjoining the Rule and ordering that the case be heard during the panel’s sitting commencing November 6, 2023.

Join us for a 30-minute, audio-only briefing in which NACUA members Seth Gilbertson, Senior Counsel, Bond, Schoeneck & King, PLLC and Terance (Tery) Gonsalves, Partner, Alston & Bird LLP will provide an overview of:

  • BDR’s origins, evolution, and the current legal landscape,
  • The applicable legal standards in light of recent legal developments,
  • Considerations when determining whether to respond to BDR applications, and
  • Practical tips for responding to BDR applications.