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Lawsuit Says Education Department Fails to Cancel Loans After College Closures

A new lawsuit alleges the Education Department is not fully meeting federal requirements to erase student debt when colleges suddenly close.

AI-written summary · The Chestnut Post · October 29, 2026 at 10:00 AM EDT · How we use AI

Lawsuit Says Education Department Fails to Cancel Loans After College Closures

A new lawsuit alleges that the Education Department is not fully complying with federal rules requiring student loan cancellation for borrowers whose colleges abruptly shut down, NPR reports.

Federal law requires the department to erase those loans. The lawsuit claims the department has fallen short of that obligation, leaving borrowers with debt after their schools closed.

Originally reported by NPR. Read the full story at NPR

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