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The Education Department is facing another lawsuit over withholding student-debt relief for borrowers.
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The lawsuit said the department is not processing relief for borrowers whose schools shut down.
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It leaves borrowers who qualify stuck paying their balances and facing default, the lawsuit said.
Student-loan borrowers whose schools shut down are not getting the debt relief they’re owed, a new lawsuit said.
On Wednesday, advocacy group Student Defense filed a class-action lawsuit on behalf of Kendrick Gaussoin, a borrower who took out student loans to attend the Brooks Institute. The visual arts college shut down in 2016 due to financial distress and new regulation on for-profit colleges; Gaussoin was left with student debt but no degree.
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