NPR
Their colleges closed, but the government refuses to erase their debts, lawsuit says
Thursday, October 29, 2026
A group of borrowers whose colleges closed filed a lawsuit against the Education Department alleging it has not fully erased their student loan debts as required by federal law. Federal regulations state that borrowers whose institutions close are eligible for loan forgiveness. The lawsuit seeks to compel the department to process all eligible claims and erase the remaining balances.
Original reporting:
