A father of two has sued the U.S. Education Department after being denied student loan relief for a college that shut down, leaving him with significant debt but no degree. The lawsuit alleged that borrowers entitled to debt cancellation under the department's own rules were instead being required to keep paying.
Here's what to know
Kendrick Gaussoin was a student at the Brooks Institute, a for-profit, art-focused college, when it shut down in 2016 due to financial challenges and stricter oversight of for-profit schools, according to Business Insider. Under Department of Education rules, Gaussoin should have had his student debt eliminated through a "closed school discharge."
However, Gaussoin's lawsuit alleged that, though he met the requirements for loan cancellation, the department still denied his application. Student Defense, an advocacy organization, has been representing Gaussoin in bringing the potential class-action suit.
"When the Department expanded relief for Brooks students, I was overjoyed," Gaussoin said, per Business Insider. "I qualify, but my application was denied anyway."
More background
With his application denied, Gaussoin, now a father of two, has had no choice but to continue making payments on his student loans. Borrowers who fall behind on student loan payments can face significant consequences. If a borrower defaults, federal benefits such as Social Security can be seized, and wages can be garnished.
For Gaussoin, the burden amounts to "tens of thousands of dollars of debt and no degree," he said.
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More borrowers became eligible for debt cancellation under the closed school discharge thanks to a January 2025 decision under the previous administration, which widened the qualifying time frame. With their lawsuit, Student Defense and Gaussoin have urged the court to force the department to follow its own rules.
"The Department cannot make promises to students and then pretend that those promises do not exist," Alexander Elson, vice president of Student Defense, said in a statement quoted by Business Insider. "Thousands of borrowers are entitled to discharges under the Department's 2025 Decision, and we are going to court to make sure they receive them."
Where can I learn more?
The fight over closed school discharges has been just one of many challenges facing student loan borrowers.
• Sallie Mae and SoFi charged interest rates reaching 18% as U.S. student debt mounts.
• A Georgia mother said her student loan bill hit $1,014, up from $404.
• In the U.S., student loan forgiveness could bring a surprise tax bill of $6,000–$12,000.
• A Rhode Island bus driver owed $156,000 in Parent PLUS loans despite never attending college.
• Some graduates in England still owed more despite making student loan payments for 10 years.
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