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Lawsuit alleges Trump administration only partly follows closed-school discharge rules

NPR reports that a nonprofit lawsuit says the Education Department is not fully applying closed-school discharge rules to borrowers such as Kendrick Gaussoin.

Updated Oct 29, 2026 · 10:24 UTC1 reports

The short version

  • A Student Defense lawsuit filed in federal court alleges the Education Department is illegally failing to fully follow closed-school discharge rules, according to NPR.[NPR]
  • Kendrick Gaussoin's August 2026 discharge request was denied, despite a January 2025 Biden-era expansion of eligibility that he says he meets.[NPR]
  • The Education Department says it stands by its implementation of the program, and spokesperson Ellen Keast says the Biden administration inappropriately expanded the discharge period.[NPR]
  • Whether the lawsuit succeeds is unresolved, and the lawsuit says potentially thousands of borrowers could be affected.[NPR]

Key facts

  • Student Defense, a nonprofit borrower advocacy group, filed a federal lawsuit against the Education Department on behalf of Kendrick Gaussoin and potentially thousands of other borrowers.[NPR]
  • The Education Department says it stands by its implementation of the closed school discharge program.[NPR]
  • A review by the Government Accountability Office found that more than 1,100 colleges closed between 2010 and 2020, leaving 246,000 borrowers eligible for a closed school discharge.[NPR]
  • A January 6, 2025 order by then-undersecretary James Kvaal expanded the look-back window for borrowers at several closed schools, including Brooks.[NPR]
  • Gaussoin applied for a closed school discharge on August 23, 2026, and an August 31 letter from the Trump administration denied his request.[NPR]
  • Education Department spokesperson Ellen Keast said the Biden administration inappropriately expanded the closed-school discharge period using a digital pen.[NPR]
  • In November 2019, Education Secretary Betsy DeVos used the same authority to expand the look-back window for borrowers at two art institutions.[NPR]

What remains uncertain

  • Whether the administration is illegally refusing to fully follow the discharge rules is disputed, and no court ruling is reported.[NPR]
  • The total number of affected borrowers is unclear; the lawsuit says potentially thousands could qualify.[NPR]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.