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Accreditation & Program Issues: Get Full Loan Discharge & Tuition Refunds

Lost accreditation? Credits won't transfer? Degree not recognized? You can get 100% federal loan discharge, tuition refunds, and compensation if your school lost accreditation or misrepresented its status.

$29B
Approved in debt relief for 1.6M borrowers misled by colleges (2021-2024)
100%
Full loan discharge possible plus reimbursement of amounts already paid
$127M
Westwood College borrowers discharged after school lost accreditation
Free
Borrower Defense application - no upfront costs or fees

Accreditation Issue Assessment

Check if you qualify for loan discharge and tuition refunds

Assess Your Case

Enter your details to see if you may qualify for Borrower Defense discharge

Our AI will analyze your description and guide you through the next steps

What Is Accreditation and Why Does It Matter?

Accreditation is a quality assurance process where an independent external body evaluates and verifies that a school or educational program meets established educational standards. This voluntary peer-review process ensures that institutions provide quality education and that degrees hold value in the job market and for further education.

When a school loses accreditation or never had proper accreditation in the first place, the consequences can be devastating for students: credits become non-transferable, degrees lose recognition, professional licenses become unattainable, and years of education investment can become worthless.

If your school misrepresented its accreditation status—whether it claimed to be accredited when it wasn't, lost accreditation after you enrolled, or promised your program was accredited when it lacked proper programmatic accreditation—you have legal rights to seek full federal loan discharge and tuition refunds through Borrower Defense to Repayment.

Recent federal actions have resulted in nearly $29 billion in approved debt relief for 1.6 million borrowers who were misled by their colleges. The Department of Education has significantly strengthened protections for students affected by accreditation fraud and misrepresentation.

2024-2025 Key Updates

  • The Department of Education has discharged $17.2 billion for 974,820 borrowers under Borrower Defense as of April 2024
  • Recent rule changes make it easier to prove harm from accreditation misrepresentation
  • Schools that misrepresent accreditation can face $25,000 fines per violation and loss of federal aid eligibility
  • Approved applicants receive 100% discharge plus reimbursement of any amounts already paid

Your Rights If Your School Lied About Accreditation

  • 100% federal student loan discharge for loans used to attend the school
  • Reimbursement of any loan payments you already made
  • Removal of negative credit reporting related to the discharged loans
  • Potential tuition refunds through state attorney general actions or lawsuits
  • No obligation to repay discharged loans, and collection actions will stop

Types of Accreditation

Institutional Accreditation

Covers the entire school and all its programs. Most common types are regional accreditation (considered the gold standard) and national accreditation.

Required for federal financial aid eligibility and credit transfer to other accredited schools

Programmatic (Specialized) Accreditation

Applies to specific programs within a school, particularly in professional fields like nursing, engineering, business, law, social work, and teaching.

Often required for professional licensing exams and employment in specialized fields

  • Nursing: CCNE or ACEN accreditation required for RN licensing in most states
  • Engineering: ABET accreditation needed for Professional Engineer (PE) licensure
  • Social Work: CSWE accreditation required for clinical social worker licensing
  • Business: AACSB accreditation preferred by top employers
  • Teaching: State-specific accreditation required for teacher certification

Am I Eligible for Loan Discharge and Refunds?

You may qualify for Borrower Defense discharge if your school misrepresented its accreditation status and you were harmed as a result

1. School Misrepresentation

School claimed to be accredited when it was not, or lacked proper accreditation type
School lost institutional or programmatic accreditation after you enrolled or while you attended
School promised credits would transfer based on accreditation, but they didn't

You must show the school made false statements about accreditation in marketing materials, websites, or verbal representations

2. Reliance on Misrepresentation

You enrolled or continued attending based on the school's accreditation claims
You chose this school over others because of represented accreditation status
You took out federal student loans expecting the degree would be recognized

3. Demonstrable Harm

Unable to obtain professional license because degree is from non-accredited program
Cannot transfer credits to another institution for further education
Degree not recognized by employers in your field
Cannot sit for required licensing exams (nursing boards, bar exam, etc.)
Lost job opportunities or income due to unrecognized degree

4. Federal Student Loans

You must have federal student loans (Direct Loans, FFEL, Perkins) to qualify for discharge
Private loans are not eligible for Borrower Defense, but may be included in state lawsuits
Parent PLUS loans may be eligible if the parent can show they relied on misrepresentation

Strong Cases: Examples That Often Succeed

Nursing programs: When a nursing school loses CCNE/ACEN accreditation and graduates cannot sit for NCLEX (nursing licensing exam). These cases have very high success rates because the harm is clear and immediate—the degree becomes worthless for its intended purpose.

For-profit college closures: Schools like ITT Tech, Corinthian Colleges, and Westwood College that misrepresented accreditation status and job placement. Thousands of students from these schools have received full loan discharge. If you attended a closed for-profit college, you may also qualify for automatic Closed School Discharge.

What Relief Can I Receive?

Approved Borrower Defense applications result in complete relief from federal student loan obligations

Federal Loan Discharge

100%

Complete discharge of federal student loans used to attend the school. This includes Direct Loans, FFEL Program loans, and Perkins Loans related to enrollment at the school.

Payment Reimbursement

Full Amount

Any payments you already made on discharged loans will be reimbursed to you. This can amount to thousands of dollars in recovered payments, even if you've been paying for years.

Credit Report Relief

Complete

Discharged loans will be removed from credit reports, and any negative marks related to those loans will be deleted. Collections will stop immediately upon approval.

Additional State-Level Remedies

Tuition Refunds

Some states require schools to refund tuition for students affected by accreditation loss. File complaints with your state attorney general and education department.

Private Loan Relief

While Borrower Defense only covers federal loans, you may be able to discharge private loans through state lawsuits, class actions, or individual breach of contract claims.

Damages for Lost Income

In some cases, you may be able to sue for lost wages and reduced earning capacity if you can prove the school's lies prevented you from working in your chosen field.

How to File for Loan Discharge

Follow these steps to submit your Borrower Defense to Repayment application

1
Gather Evidence of Accreditation Misrepresentation

Collect all documents showing the school claimed to be accredited or promised accreditation benefits

  • School websites, brochures, and marketing materials (use Wayback Machine for archived versions)
  • Enrollment agreements and contracts mentioning accreditation
  • Email correspondence with recruiters or admissions staff
  • Transcripts or course catalogs referencing accreditation
  • Accreditation status letters from accrediting bodies showing loss of accreditation
  • Any written promises about credit transferability or licensing eligibility

2
Document the Harm You Suffered

Prove how the school's lies about accreditation damaged you financially or professionally

  • Rejection letters from employers citing accreditation concerns
  • Denial letters from professional licensing boards
  • Credit evaluation reports showing credits won't transfer
  • Job postings showing accreditation requirements you can't meet
  • Earnings statements showing income loss or inability to work in your field
  • Letters from other schools refusing to accept your credits

3
Complete the Borrower Defense Application

Fill out the official application form with detailed information

  • Go to StudentAid.gov/borrower-defense and create an FSA ID if you don't have one
  • Complete all sections of the application form thoroughly
  • Write a detailed narrative explaining what the school told you, what was actually true, and how you were harmed
  • Be specific with dates, names of recruiters, and exact statements made
  • Upload all supporting documents (the more evidence, the better)
  • Keep copies of everything you submit

4
Submit Simultaneously to Multiple Agencies

Don't just file with the Department of Education—maximize your chances

  • File Borrower Defense application with Department of Education (primary)
  • File complaint with your state attorney general (may lead to state-level refunds)
  • File complaint with your state education department or consumer protection office
  • Report to the school's accrediting agency if it still exists
  • Consider filing with Federal Trade Commission (FTC) for fraud
  • Join or monitor class action lawsuits against the school

5
Request Forbearance While Application Is Pending

You can request to stop making payments while your claim is reviewed

  • Contact your loan servicer and request Borrower Defense forbearance
  • Reference your pending Borrower Defense application
  • Forbearance will pause payments and interest while claim is pending
  • Continue making payments if you prefer (will be reimbursed if approved)
  • Save all correspondence showing forbearance status

Time Limits to File Your Claim

Act quickly—some deadlines apply depending on your state and situation

Federal Borrower Defense

No federal deadline

There is currently no statute of limitations for filing Borrower Defense claims. However, it's best to file as soon as possible while evidence is still available and fresh.

State Fraud Claims

1-6 years from discovery

State consumer protection and fraud claims typically have 1-6 year statutes of limitation from when you discovered (or should have discovered) the fraud. Varies by state.

Breach of Contract

3-6 years from breach

Most states allow 3-6 years to file breach of contract claims for tuition refunds. The clock typically starts when the breach occurred (e.g., when you discovered the accreditation issue).

Closed School Discharge

3 years from closure

If your school closed, you have 3 years from the closure date to apply for Closed School Discharge. This is automatic for students enrolled within 120 days of closure.

Why You Should File Now

  • School records may be destroyed or become unavailable
  • Witnesses (other students, staff) may be harder to locate
  • Memories fade and evidence deteriorates over time
  • Pending class actions may have filing deadlines
  • Political changes could affect Borrower Defense program
  • The sooner you file, the sooner you can stop payments (with forbearance)

Jurisdiction Comparison

Compare education rights and accreditation oversight across different regions

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Frequently Asked Questions

Quick answers to common questions about accreditation fraud and loan discharge

How long does the Borrower Defense process take?

Will filing for Borrower Defense hurt my credit?

Can I file if I already paid off my loans?

What if my school is still open and accredited now?

Do I need a lawyer to file Borrower Defense?

What happens to my transcript if my loans are discharged?

Can I file if I attended a for-profit college that closed?

Will I owe taxes on forgiven student loans?

Ready to Get Your Loans Discharged?

File your Borrower Defense application today. It's free, and you could get 100% loan discharge plus refunds of payments already made.

No upfront costs100% discharge possiblePayments refunded