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Was your student loan debt really forgiven? Why it might still be on your credit report.
Coverage Jaclin Gomez Coverage Jaclin Gomez

Was your student loan debt really forgiven? Why it might still be on your credit report.

The Department of Education may still be reporting $4.6 billion in canceled student loan debt to credit bureaus, according to a proposed class action lawsuit.

The suit, filed last week by student borrowers alongside the Project on Predatory Student Lending (PPSL), alleges that the Education Department reported canceled debt as still outstanding to the three major credit bureaus. 

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300,000 student-loan borrowers got their debt wiped out — but their credit is still taking a hit, a new lawsuit says
Coverage Jaclin Gomez Coverage Jaclin Gomez

300,000 student-loan borrowers got their debt wiped out — but their credit is still taking a hit, a new lawsuit says

The lawsuit concerns borrowers whose loans were wiped out via the borrower defense to repayment program, after they were defrauded by "predatory for-profit" schools, including Ashford University and ITT Technical Institute. It specifically pertains to borrowers who received such relief between April 2022 and January 2025.

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The government canceled her student loans due to a scam - but $72,000 is still on her credit report
Coverage Jaclin Gomez Coverage Jaclin Gomez

The government canceled her student loans due to a scam - but $72,000 is still on her credit report

The Department of Education may still be reporting $4.6 billion in canceled student loan debt to credit bureaus, according to a proposed class action lawsuit.

The suit, filed last week by student borrowers alongside the Project on Predatory Student Lending (PPSL), alleges that the Education Department reported canceled debt as still outstanding to the three major credit bureaus. 

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Student Loan Borrowers Allege Canceled Debt Is Still Trailing Them
Coverage Jaclin Gomez Coverage Jaclin Gomez

Student Loan Borrowers Allege Canceled Debt Is Still Trailing Them

They allege their student loans were forgiven, but that the consequences of their debt live on.

A pair of student-loan borrowers filed a suit against the Education Department on Thursday claiming that despite participating in a debt-cancellation program years ago, their student loans are still reported as active on their credit reports. That, they allege, has depressed their credit scores and restricted their ability to take out other debt. 

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