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U.S. Secretary of Education Linda McMahon testifies before a Senate Appropriations hearing on U.S. President Donald Trump’s budget request for the Department of Education, on Capitol Hill in Washington, D.C., U.S., June 3, 2025. REUTERS\/Annabelle Gordon<\/p>\n
Annabelle Gordon | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
A group of student loan<\/a> borrowers sued the Trump administration on Thursday, alleging they suffered unexpected financial damages despite getting their debts forgiven years ago. <\/p>\n The borrowers said in their lawsuit, Woods v. U.S. Department of Education, filed in the U.S. District Court for the District of Columbia, that the department continues to report their canceled federal student loans<\/a> to credit reporting companies as active. The inaccurate credit reports can affect borrowers’ ability to obtain mortgages, rental housing, auto loans and employment, according to The Project on Predatory Student Lending, which is serving as counsel for the plaintiffs.<\/p>\n “These borrowers have done everything asked of them, but this false debt is still shaping where they can live, what they can borrow, and what their futures look like,” said Eileen Connor, the president and executive director of PPSL.<\/p>\n<\/div>\n