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.
A mechanism called a “closed school discharge” allows borrowers whose schools shut down to receive debt relief. A January 2025 decision under the Biden administration expanded the timeframe for relief, allowing more borrowers to qualify.
The lawsuit said the…