Huh, interesting. I'm from the midwest but if it's around I definitely don't hear it often enough to notice it at all.

I remember that one quite strongly because a student in my first serious Japanese class asked a confused question about kasu/kariru... and simply refused to believe the (slightly baffled native-speaking Japanese) teacher that "I borrowed it to him" was an incorrect place to start 'translating' from.

sounds like you'd want to use loaning there to make things a bit clearer though. Although that depends on whether the student understands that to borrow and to lend are actor-inverted synonyms