Two student-loan borrowers have sued the U.S. Department of Education in a proposed class action, alleging that federal loans canceled through group discharges remain incorrectly listed as outstanding on their credit reports. The suit, filed Thursday in the U.S. District Court for the District of Columbia, seeks damages under the Fair Credit Reporting Act and alleges the department continued furnishing the balances to Equifax, Experian and TransUnion. The Project on Predatory Student Lending estimates that $4.6 billion in canceled debt remains reported for more than 300,000 people. Between April 2022 and January 2025, the department announced final group discharges covering more than 1.5 million borrowers and $23.4 billion in loans connected to schools where it found widespread fraud and misconduct. Plaintiff Mandy Woods' reports showed a $71,901 balance in August 2026 after her Ashford University loans qualified for automatic discharge, while Jorge Cortes' reports showed $21,586 despite his ITT Technical Institute loans being included in an August 2022 discharge.