U.S. Department of Education Group Discharge Lawsuit, Does This Affect You? Project on Predatory Student Lending v. U.S. Department of Education, No. 1:26-cv-13040

Project on Predatory Student Lending sued the U.S. Department of Education, No. 1:26-cv-13040, in Massachusetts federal court on July 1, 2026, demanding records on the $23 billion in student loan discharges it promised more than 1.5 million borrowers. If your loans were supposed to be wiped out and the balance is still sitting there, you’re not imagining it. Here’s what the lawsuit says and what to do right now.

U.S. Department of Education Group Discharge Lawsuit — Key Facts

Detail	Information
Lawsuit Filed	July 1, 2026
Defendant	U.S. Department of Education
Alleged Harm	ED has not disclosed whether $23 billion in promised Group Discharge relief actually reached 1.5 million approved borrowers, and has ignored 15 FOIA requests, some pending over two and a half years
Law Alleged	Freedom of Information Act, 5 U.S.C. § 552(a)
Who Is Affected	Borrowers approved under 10 Group Discharge announcements (2022–2025) — see full list below
Court & Case Number	U.S. District Court for the District of Massachusetts, No. 1:26-cv-13040
Current Stage	Complaint filed, no ruling yet
Lead Plaintiff Deadline	N/A — this is a FOIA case, not a class action, so there’s no lead plaintiff process
Settlement Status	No settlement. This suit seeks records, not a direct discharge order
Last Updated	July 7, 2026

Who Is Being Sued and Why Does It Involve Your Student Loans?

The Department of Education spent three years announcing that specific groups of borrowers — people who’d attended schools the Department itself found guilty of “widespread misconduct” — would have their federal loans erased automatically. No application. No paperwork. Just a discharge. The Project on Predatory Student Lending, a nonprofit that’s represented defrauded borrowers for over a decade, says the Department has gone silent on whether any of that actually happened.

What Did the Department of Education Promise, and What Went Wrong?

Between April 2022 and January 2025, the Department issued ten separate Group Discharge announcements. Each one named a school, described the misconduct, and told approved borrowers they didn’t need to lift a finger. Combined, these announcements covered more than 1.5 million people and roughly $23 billion in loan balances.

PPSL started asking questions in November 2023, filing five FOIA requests about the earliest discharges. It filed ten more in April 2025 covering the newer ones. In its own confirmation emails, the Department told PPSL its “average request processing time is 185 business days.” FOIA’s legal limit is 20. As of the date the lawsuit was filed, every single one of the 15 requests was still marked “In Process.”

“It shouldn’t take a lawsuit to learn whether those promises have been fulfilled,” said Eileen Connor, PPSL’s president, in the group’s statement announcing the suit. This case sits alongside a broader wave of litigation over federal student loan forgiveness that’s been working through the courts since early 2026 — but this one is narrower. It’s not asking a judge to cancel anyone’s debt. It’s asking a judge to force the Department to show its work.

Are Your Loans Part of One of the Ten Group Discharges?

Here’s exactly how to know if this case touches you. You may be covered if you attended:

• Marinello Schools of Beauty, 2009 through February 2016
• Corinthian Colleges, 1995 through April 2015
• ITT Technical Institute, January 2005 through September 2016
• Westwood College, January 2002 through November 2015
• CollegeAmerica locations in Colorado, January 2006 through the school’s 2020 closure
• Any Art Institutes campus, January 2004 through October 2017
• Ashford University (now University of Arizona Global Campus), March 2009 through April 2020
• A school owned by Centers for Excellence in Higher Education, January 2006 through August 2021
• Drake College of Business, January 2008 through July 2015
• Lincoln Technical Institute’s Criminal Justice program in Lowell or Somerville, Massachusetts, 2010 through 2012 or 2013

Loans you’re still repaying on federal student aid websites don’t automatically mean you were denied. Balance fluctuations during discharge processing are common and don’t necessarily mean something’s wrong. But if it’s been months since your school’s announcement and nothing has changed, that’s worth flagging.

Related article: Banner Health Patient Portal Settlement, Check If You Qualify — McCulley v. Banner Health, No. 2026CV30182

Borrowers Outside Massachusetts — Are You Still Covered?

Yes. This is a federal loan program, not a state-specific one. The lawsuit was filed in Massachusetts because that’s where PPSL is based, but the Group Discharges apply nationwide to anyone who attended the listed schools during the listed periods.

Not sure whether your loans fall under one of these ten discharges? A student loan attorney or education law attorney can help you check your specific enrollment dates against the announcement terms.

What Is This Lawsuit Actually Asking the Court to Do?

This is not a claim for money, and there’s no dollar figure attached to it. PPSL is asking the court to declare the Department’s failure to respond unlawful and order it to hand over the records — internal policies, servicer guidance, audits, and, critically, data on how many approved borrowers still have outstanding balances.

Could This Lead to Something Bigger Later?

Possibly. If the records show the discharges weren’t processed properly, PPSL has said it may pursue further legal action to force compliance. That’s happened before — MOHELA, one of the Department’s largest loan servicers, is already facing separate lawsuits over failures to implement court-ordered discharges. For now, though, this case is about getting the paperwork, not getting a check.

What Should Affected Borrowers Do Right Now?

1. Check whether your school and enrollment dates match one of the ten Group Discharges listed above
2. Log into your Federal Student Aid account and confirm your current loan balance and status
3. If your loans should have been discharged and weren’t, contact your servicer directly and ask for a written explanation
4. File a complaint with the FSA Ombudsman if your servicer can’t resolve it
5. Save every account statement, email, and screenshot — dates matter if this becomes a bigger dispute later
6. Watch the docket in the District of Massachusetts, Case No. 1:26-cv-13040, for how the Department responds

U.S. Department of Education Group Discharge Lawsuit — Frequently Asked Questions, No. 1:26-cv-13040

Is there a lawsuit against the Department of Education over student loan discharges right now?

 Yes. The Project on Predatory Student Lending filed suit on July 1, 2026, in Massachusetts federal court, demanding records on whether promised discharges were actually processed.

Do I need to do anything right now to be part of this?

 No. This isn’t a class action you join. It’s a records request lawsuit. Your best move is checking your own account status directly.

When will this case resolve?

 FOIA lawsuits often end in negotiated timelines rather than trials, so records could come out in stages. There’s no set date yet.

Can I file my own complaint if my discharge wasn’t processed?

 Yes. Filing with the FSA Ombudsman is a direct path, separate from this lawsuit, and doesn’t require waiting on the case’s outcome.

How will I find out what this lawsuit uncovers?

 Court filings are public under Case No. 1:26-cv-13040 in the District of Massachusetts. PPSL has also said it will share updates publicly if it obtains new records.

What law does the Department allegedly violate?

 The Freedom of Information Act, 5 U.S.C. § 552(a), which sets a 20-business-day deadline for responding to records requests.

Does this lawsuit cover Sweet v. McMahon borrowers too?

 No. Sweet v. McMahon is a separate settlement covering borrowers whose individual Borrower Defense applications were delayed. This case covers the ten blanket Group Discharge announcements, a different track entirely.

What happens if the records show discharges weren’t processed?

 PPSL has indicated it may pursue further legal action to force compliance, though nothing beyond this records request has been filed as of today.

Sources Used in This Department of Education Group Discharge Article

• Class Action Complaint — Project on Predatory Student Lending v. U.S. Department of Education, filed July 1, 2026: https://static1.squarespace.com/static/62d6e418e8d8517940207135/t/6a4576198fb96405221d5a66/1782937113909/001+Complaint.pdf
• Press Release — Project on Predatory Student Lending, July 1, 2026: https://www.ppsl.org/news/ppsl-sues-department-of-education-for-records-on-promised-student-loan-relief
• News Coverage — Forbes, July 6, 2026: https://www.forbes.com/sites/adamminsky/2026/07/06/student-loans-should-have-been-discharged-for-15-million-people-says-new-lawsuit/
• Official Group Discharge Announcements — Federal Student Aid (.gov): https://studentaid.gov/announcements-events/borrower-defense-update

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Laws vary by state and individual circumstances differ. For advice about your specific situation, consult a qualified attorney.