Borrowers Initiate Class Action Lawsuit Against Education Department Regarding Denied Loan Discharges

A class action lawsuit has been filed against the U.S. Department of Education and Secretary Linda McMahon. The suit alleges the department is unlawfully denying student loan discharges under the Closed School Discharge program, specifically for applications qualifying under the 2025 decision to extend look-back periods. Borrowers claim rejections occur without explanation or public notice, impacting those seeking relief from loans for closed institutions.