Student Loan Update: New Lawsuit Filed Against Trump's Education Department
Summary
Student loan borrowers filed a class action lawsuit against the U.S. Department of Education and Secretary Linda McMahon, alleging the department has not applied expanded eligibility for closed-school loan discharges. The case concerns a January 2025 determination covering students from four school groups and institutions; the department has not yet responded in the article.Key Facts
- The lawsuit was filed Wednesday in the U.S. District Court for the District of Columbia.
- The plaintiffs allege the department denied discharge applications despite a 2025 decision that expanded eligibility for some borrowers.
- The January 2025 determination identified Career Education Corporation, Education Management Corporation, Education Corporation of America, and Bay State College as cases of exceptional circumstances.
- The determination extended the period in which some former students could qualify beyond the standard eligibility window.
- Closed School Discharge can cancel federal student loans when a borrower's school closes and the borrower cannot complete the program.
- The complaint names Education Secretary Linda McMahon and the Department of Education as defendants.
- Kendrick Gaussoin, who attended the Brooks Institute, is the lead plaintiff and says his application was denied despite his claimed eligibility.
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