; and (ii) determine the entitlement of the borrower to relief based on all evidence available to the Department. (B) Independent determination A determination under subparagraph (A)(ii) with respect to a borrower shall be independent of any action that the Department may take under this Act to recover funds from an institution of higher education for an act or omission related to such determination. (C) Cancellation of debt In a case in which the Secretary determines under subparagraph (A)(ii) that the borrower is entitled to relief, the Secretary shall— (i) cancel any outstanding balance of principal and interest due on each loan made under this part that the borrower received for enrollment at the institution of higher education against which the borrower is asserting the defense to repayment; and (ii) return to the borrower the amount of any payments made on such loans. (3) Regulations 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. .