Borrowers filed a proposed class action against the Education Department on September 24 alleging that canceled federal student loans are still being furnished to credit bureaus as outstanding debt. The Project on Predatory Student Lending says the suit seeks damages under the Fair Credit Reporting Act in the U.S. District Court for the District of Columbia.
The organization estimates that the disputed reporting involves $4.6 billion in canceled debt and more than 300,000 people. Those are estimates from the plaintiffs' representatives, based on publicly available data, not numbers established by a final judgment. A proposed class action also does not mean a class has been certified or damages awarded.
The release describes borrowers who received group-discharge decisions but later saw growing balances in credit reports. The distinction matters: a discharge letter and the bureau record are separate documents, and an unresolved reporting entry can affect a lender's assessment even when the borrower believes the obligation is gone.
Keep the original discharge notice, current credit reports, account identifiers and dispute responses together. Compare the specific loan covered by the discharge with the entry being reported rather than assume every student-loan balance must be deleted. The lawsuit is not an instruction to stop paying unrelated loans, and it does not create a refund claim form today.