The Department of Education has a variety of solutions to help those with federal student loans. One of these options is called DTR or Defense to Repayment. This option allows a borrower to tell his or her story as to why they should be released from having to pay their loan back. This option was a popular one for those involved with colleges who closed before the borrower graduated, such as ITT, colleges who made false promises, or who misrepresented their accreditations.
Changes in the DTR Option
Defense to Repayment originally stopped all collection activity, including wage garnishment, and granted the borrower a reprieve from payments while the DTR was reviewed. However, all of those protections are going away as the Department of Education changes this option. Although DTR is still an option for federal student loan borrowers, it can sometimes take at least two years for a decision, and all the while, the borrower must continue to make payments. In fact, before the change, the borrower could qualify to receive a refund of these payments if the DTR was granted. With this change, the ability to receive that refund is severely limited.
The Department of Education has chosen to take away the refunds and the reprieve from collections initially, turning this option into an unreliable, costly option if you do not understand and correctly execute the strategy. The changes to Defense to Repayment are expected to be grandfathered for those who submit their DTR prior to the change date (July2020). However, this has not been confirmed. Therefore, if you have already submitted, or are about to submit, a DTR you should come see me to discuss options to help mitigate the possibilities.
Contact an Attorney Near Me
At Lewis Roberts, PA, I can help you to define your options with Defense to Repayment and put an alternate strategy in effect to minimize the impact while waiting for a response from the Department of Education. Contact me today at 407-749-0080 to learn about options that can help you with your federal student loans.