Sec. 8. Amendments to terms and conditions of borrower defenses
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/bill/115/hr/7112/ih/section-8·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 455(h) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(h) ) is amended to read as follows: Notwithstanding any other provision of State or Federal law, a defense to repayment of a loan under this title includes— a substantial misrepresentation under section 487(c)(3); an act or omission that would give rise to a cause of action against the school under applicable State law; or such further acts or omissions that the Secretary determines appropriate. The Secretary shall, with respect to a borrower defense under this subsection— determine the entitlement of a borrower to relief based on all evidence available to the Department; and provide an expeditious and fair process to consider applications provided by individuals, groups, and representatives on behalf of groups.
A determination under subparagraph (A)(i) shall be independent of any action that the Department may take to recoup from the school related to the borrower defense. If the Secretary determines under subparagraph (A)(i) that a borrower is entitled to relief, the Secretary shall cancel all outstanding debt, and return any payments made on the loans of such borrower. The Secretary shall specify in regulations which acts or omissions of an institution of higher education a borrower may assert as a defense to repayment of a loan made under this part, except that in no event may a borrower recover from the Secretary, in any action arising from or relating to a loan made under this part, an amount in excess of the amount such borrower has repaid on such loan. .
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Sec. 8
Amendments to terms and conditions of borrower defenses
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