Business3 sources
Lawsuit Alleges Illegal Denial of Debt Relief for Borrowers with Closed Schools
- A new lawsuit alleges the Department of Education is illegally denying debt relief to thousands of borrowers.
- The lawsuit claims the Education Department is not processing relief for borrowers whose schools have shut down.
- Federal law mandates the Education Department to erase student loans for borrowers whose colleges close suddenly.
- The lawsuit states that borrowers who qualify are left paying their debts despite the legal requirement.
- The Department of Education is facing scrutiny over its handling of student-debt relief for affected borrowers.
Articles (4)
CNBC·
Class action lawsuit blames Trump officials for student loan forgiveness delays
Business Insider·
Student-loan borrowers in public service are trapped with debt that 'should be forgiven,' a new lawsuit says
Thousands of student-loan borrowers whose schools shut down have been illegally denied debt relief, a new lawsuit says
NPR·
Their colleges closed, but the government refuses to erase their debts, lawsuit says