Using the “Borrower Defense” To Wipe Out Your Student Loans
Student loan debt in America is in the trillions. And student loan debt it is very difficult, if not impossible, to discharge through bankruptcy . So, if you are not likely to be able to discharge your student loans by filing for Chapter 7 bankruptcy, is there another way to wipe out that debt? According to a recent article in Fortune Magazine , you may be able to rely on the “borrower defense” to get rid of your monthly student loan payments. Students Seeking Loan Forgiveness for Fraudulent College Marketing Tactics According to the article, debtors throughout the country are looking to an obscure federal law that may allow them to wipe out their student loan debts. As the article notes, “for many of them, it’s working.” What is this obscure federal law? In short, it says that students can be eligible to “ditch their loans if they can show their school made false or fraudulent claims to recruit them.” What do false or fraudulent claims during recruiting look like? Su...