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Lawsuit alleges wrongly reported student debt totals $4.6 billion
The complaint says credit bureaus are still showing $72,000 of the debt for at least one borrower, even after the government canceled loans tied to an alleged scam.
MarketWatch reports that a lawsuit alleges the government is still reporting student debt to credit bureaus that should have been canceled.
According to the summary, the lawsuit claims the government is reporting $4.6 billion in student debt owed by about 300,000 borrowers despite those debts being tied to loan cancellations.
The report also says the credit reporting can remain for individual borrowers, citing a case where $72,000 is still listed on a credit report after cancellation tied to a scam.