Groups Sue Education Dept. Over Borrower Defense

Student Defense, the Project on Predatory Student Lending and the National Consumer Law Center have filed a lawsuit against Education Secretary Miguel Cardona and the Department of Education on behalf of student loan borrowers with unresolved borrower defense to repayment claims.

The lawsuit, filed in federal court in Massachusetts, alleges the department has for six years ignored its responsibility to issue a decision on a group borrower-defense application submitted by the Massachusetts attorney general in May 2016 on behalf of eligible former students of the now-defunct Kaplan Career Institute.

The Education Department, which has granted more borrower-defense discharges than any other administration, declined to comment on pending litigation.

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