Student Borrowers’ Proposed Class Action Over Reporting of Canceled Federal Loans

Two borrowers filed a proposed class action against the U.S. Department of Education alleging that federally canceled student loans continued to be reported as outstanding to major credit bureaus, allegedly harming borrowers’ access to credit and other opportunities. The case seeks damages under the Fair Credit Reporting Act and is at the filing stage in the U.S. District Court for the District of Columbia.