Lawsuit says Education Department illegally denied debt relief for thousands of borrowers whose schools closed
Advocacy group Student Defense files class action over unprocessed closed school discharges
A lawsuit filed this week by advocacy group Student Defense alleges the Department of Education has illegally denied debt relief to thousands of student-loan borrowers whose schools shut down. The class-action complaint, brought on behalf of borrower Kendrick Gaussoin, says the department has failed to process closed school discharges despite expanding eligibility under a January 2025 decision.