Borrower Defense Claims: Best Practices for Protecting Your Institution
Borrower Defense to Repayment (BDR) claims can present significant compliance and financial risk for institutions participating in the federal student aid programs. When a claim is received, how an institution responds—and the documentation it can provide—may play an important role in the Department of Education’s review.
For institutions, the best defense often begins long before a Borrower Defense claim is filed. Strong documentation, consistent policies and procedures, and evidence demonstrating that students received the education and services promised can help an institution respond effectively if a claim arises.