Summary
A class-action lawsuit was filed in late October 2025 against the U.S. Department of Education and major credit agencies. The lawsuit claims that many student loan borrowers were incorrectly marked as delinquent or in default after the end of a loan repayment pause. This could result in $100,000 returned to each affected borrower.
Key Facts
- The lawsuit was filed by A. Wayne Johnson, a former Trump administration official, and four other borrowers.
- It targets the U.S. Department of Education and three major credit reporting agencies for alleged misreporting.
- The lawsuit claims over five million borrowers were wrongly labeled as delinquent or in default since early 2025.
- The suit predicts the number could rise to ten million by the end of 2025.
- It accuses the Department of Education's systems of incorrectly advancing borrowers' accounts through delinquency stages.
- Long wait times and high call abandonment rates made it difficult for borrowers to resume payments.
- The plaintiffs seek $100,000 for each affected borrower and removal of negative credit reports.
- The Department of Education denied the allegations and criticized the lawsuit.
