How To Get Federal Student Loans Forgiven Based On Education Fraud
Thousands of consumers have been duped, scammed, hustled and the like by schools across the country and now…finally…they have a chance to fight back. A petition program called the Defense to Repayment has been released by the Department of Education as a way to provide some reprieve to the rampant consumer fraud that has occurred in the education space.
Under the letter of the law, any consumer that feels they have been defrauded by the school they attended can petition the Department of Education under this provision.
The Department of Education cites the petition should include a comprehensive account of the fraud and deception that occurred, including specific acts of alleged misconduct of the school. In addition, it should address the injury suffered by the borrower as a result of the school’s alleged misconduct. And lastly, the petition should cite the state and federal laws that were violated while dealing with the school.
Do you know your consumer laws?
Unfortunately, submitting a successful petition is not as easy at it sounds. Despite the sentiments from the Department of Education, the Federal Government is not really that motivated to discharge billions of dollars in student loan debt. The Department of Education is required by law to respond to every petition, however without some knowledge of consumer laws and how they relate to the fraud that occurred, it would be easy to see a submitted petition getting improperly denied.
What Happens After A Petition Is Submitted
When planning on submitting a petition, one can request their debt be placed in forbearance. All the federal student debt that borrower has automatically goes into forbearance even if all forbearance has been exhausted. This means the borrower would not have to make payments on any of their loans regardless if they are included in the petition or not.
In addition, if the loans are in default, any tax or wage garnishment stops. This rule alone might be worth submitting a petition for some. After the petition is submitted, the forbearance and the garnishment reprieve lasts for as long as it takes for Department of Education to respond to the petition. For those that may want to pay the interest while the debt is in forbearance or pay on the loans outside the petitioned loans, the borrower can do so.
Thousand Deceived By For-Profit Schools Can Now Petition Against Their Debt
If you feel you were defrauded by the school you attended or you are being treated poorly as a distressed borrower by your creditors, contact StudentLoanFAQ's and speak to one of our advisors about student loan forgiveness. You may qualify to consolidate or even wipe out your remaining student loans.