300,000 student-loan borrowers got their debt wiped out — but their credit is still taking a hit, a new lawsuit says

A new lawsuit alleges that the Department of Education continues to report student-loan borrowers' forgiven balances to credit bureaus, violating the Fair Credit Reporting Act. The lawsuit, filed by the Project on Predatory Student Lending, estimates that around 300,000 borrowers who were defrauded by their schools are affected. Inaccurate reporting could harm credit scores and lead to wage and benefit garnishment.

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