Student-loan borrowers are waiting for 'legally required' debt relief that Trump isn't delivering, new legal filing says
A student-loan borrower advocacy group said the Education Department should be held in contempt for failing to process borrower defense discharges.
A new legal filing alleges that the Trump administration is not fulfilling its responsibility to provide debt relief to student-loan borrowers who have been defrauded. The borrower advocacy group, Project on Predatory Student Lending (PPSL), is seeking a court order to enforce compliance with a relief settlement. The Education Department, however, disputes the motion and claims it is actively working to deliver relief.
According to the filing, over 1,000 borrowers in the settlement class are still awaiting loan discharge or refunds that the department was legally obligated to provide by missed deadlines. PSL challenges the department's response, stating that borrowers are not experiencing delays due to incompetence but rather because their accounts require further review.
The department asserts that their staff has been diligently reviewing and resolving complaints related to the settlement since April 2024, with additional staff added in 2025. The case will be heard in a public hearing on November 5.
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