EducationQuiet 10d · day 10
Lawsuit: Education Dept. refuses to erase loans for closed-college borrowers
Federal law requires loan forgiveness when colleges close suddenly, but a new lawsuit claims the department isn't complying.
What to know
- Federal law mandates automatic erasure of student loans when colleges close suddenly.
- The Education Department is being sued for allegedly failing to fully comply with this requirement.
- The lawsuit represents borrowers whose college closures should have triggered automatic debt relief.
U.S. Education Department defendant in lawsuit
How it unfolded 1 development · click the chart to see its coverage articlesposts
Oct 30Oct 31Nov 1Nov 2Nov 3Nov 4Nov 5Nov 6now · 9:57 AM ET
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Lawsuit filed over Education Dept.'s non-compliance with student loan forgiveness rules
A lawsuit claims the Education Department is not fully following federal law requiring the erasure of student loans for borrowers whose colleges close suddenly. Federal statute mandates automatic debt relief in these circumstances, but the department's implementation apparently does not meet legal requirements.
“Federal law requires the Education Department to erase the student loans of borrowers whose colleges close suddenly. A new lawsuit claims the department isn't fully following those rules.”
— NPR · source
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first by NPR, 10d ago · also NPR News