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Debt Collection Regulations
Borrower Defense Regulations
34 CFR § 685.206
Borrower responsibilities and defenses.A “borrower defense” refers to any act or omission of the school attended by the student that relates to the making of the loan for enrollment at the school or the provision of educational services for which the loan was provided that would give rise to a cause of action against the school under applicable State law. This is the provision that for-profit schools have violated. An application for asserting this defense is below.
34 CFR § 685.222
Borrower defenses for loans disbursed after June 30, 2017.
34 CFR § 685.214
Closed school discharge
34 CFR §§ 668.171- 668.176
Financial responsibility standards for educational institutions. If the the institution doesn't meet these standards, then borrower has a defense.
New Borrower Defense Rule
The regulations took effect July 1, 2020.
72,000 Borrowers Will Get $1 Billion In Student Loan Forgiveness - Do You Qualify?
Forbes 3/18/21 Biden's Education Dept will allow the borrowers who already qualified under the old regulations to get forgiveness.
Repayment and Discharge Regulations
34 CFR § 685.204
Deferment, meaning periodic installments of principal and interest need not be paid.
34 CFR § 685.205
Forbearance, meaning permitting the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than previously scheduled.
34 CFR § 685.213
Process for obtaining loan discharge due to total and permanent disability.
34 CFR § 685.221
Income-based repayment plan
Gainful Employment Regulation