The Office of Management and Budget announced today that the Department of Education plans to establish new regulations related to the Borrower Defense to Repayment Rule (BDR). Changes to the Obama-era BDR regulations are expected to include revisions to the standard and process for determining whether a borrower has a defense to repayment of a loan based on an act or omission of the school. Likely of greater interest to schools, the Department also appears ready to ease financial responsibility standards and corresponding disclosure requirements as well as current policies related to the impact of discharges on the 150 percent Direct Subsidized Loan Limit.
We will be sure to update our blog as the new regulations roll out, so be sure subscribe above to stay informed.
If you have any questions about this topic or other issues related to the current BDR regulations and potential amendments, contact David Obuchowicz at 703-934-9843 or dobuchowicz@glpclaw.com