Student Loan Borrowers Sue Trump Administration Over Reporting of Canceled Debts
A group of student loan borrowers has filed a proposed class-action lawsuit against the U.S. Department of Education, alleging that it continues to report canceled federal student loans as active on credit reports. The plaintiffs claim this misreporting affects their ability to secure housing, employment, and other financial opportunities despite having had their debts forgiven under Biden-era policies for attending fraudulent institutions. The lawsuit names Equifax, Experian, and TransUnion among the affected credit reporting agencies. One plaintiff is a Marine veteran whose loans were discharged in 2022 but still appear on his report as unpaid debt. The Project on Predatory Student Lending represents the borrowers, estimating that over 300,000 individuals are impacted by this issue. The Education Department has not yet responded to requests for comment.
Topics: class-action lawsuit credit reporting student loans U.S. Department of Education