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.
STATS, Earnings Accountability and Early Implementation: What Schools Need to Consider Before October 1
In our last blog post, we shared updates regarding the STATS final rule and reminded institutions of the upcoming October 1st reporting deadline. In this blog post, we want to expand on the final regulations in light of a recent Federal Student Aid (FSA) training on Student Tuition and Transparency System (STATS) reporting requirements and Earnings Accountability framework. At the same time, institutions are facing an important decision: whether to early implement the new Accountability regulations or remain subject to the existing Financial Value Transparency and Gainful Employment (FVT/GE) regulations until the new rule becomes mandatory on July 1, 2027.
For many schools—particularly those offering cosmetology, barbering and wellness programs—the answer may not be as straightforward as it first appears.