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.
The Project on Predatory Student Lending, or PPSL, a borrower advocacy organization whose attorneys are representing the plaintiffs in the case, says that more than 300,000 borrowers still have $4.6 billion in canceled debt reported as outstanding. The organization is seeking class-action status.
