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.
The canceled debt belonged to student borrowers who were part of "group discharges" between April 2022 and January 2025. Their debt was discharged after the schools were found to have engaged in fraud or misconduct. According to the suit, the loans continued to appear on some borrowers' credit reports, with balances due and interest accruing.
