Office of Inspector General Recommends Processing of Borrower-Defense Claims

The Department of Education's inspector general recommended this week that the review of student loan relief applications (known as borrower-defense claims) resume after several months without a ruling by the Trump administration, reports Inside Higher Ed.

In addition, the Office of Inspector General recommended the department establish a time frame for reviewing and making decisions on claims.

Approximately 95,000 borrower-defense claims are pending review by the department, reported Inside Higher Ed, and about 65 percent of those have been filed by former students of for-profit Corinthian Colleges institutions.

Democrats and student advocates have repeatedly sought answers on the lack of progress, reported Inside Higher Ed. The department has responded by stating that it is still working to set up a process for adjudicating claims. According to the Inspector General report, the Federal Student Aid's Borrower Defense Unit had clear criteria for review of claims, despite the need for clearer documentation of legal memoranda used to justify discharges and clearer policies on review of unique claims.


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