According to CNBC, a group of student loan borrowers sued the Trump administration on Thursday, alleging the Education Department continues to report loans that were forgiven years ago as active on credit files. The lawsuit, Woods v. U.S. Department of Education, was filed in the U.S. District Court for the District of Columbia and says the inaccurate reporting can hurt borrowers' chances of getting mortgages, rental housing, auto loans and jobs.

The proposed class-action case covers borrowers whose federal student debt was canceled during the Biden administration between April 2022 and January 2025 because they attended fraudulent or misleading colleges. The plaintiffs said the department is still reporting those debts to Equifax, Experian and TransUnion. One plaintiff, Marine veteran Jorge Cortes, said his ITT Technical Institute loans were forgiven in August 2022, but a $21,586 balance still appeared on his credit report this summer. The Project on Predatory Student Lending, which represents the plaintiffs, estimated the Education Department is still reporting the debts of more than 300,000 borrowers.