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The government canceled her student loans due to a scam — but $72,000 is still on her credit report

The government continues to report to credit bureaus $4.6 billion in student debt owed by some 300,000 borrowers that should have been canceled, a lawsuit claims.

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AI SUMMARY

# Summary The government is allegedly failing to update credit reports for approximately 300,000 borrowers whose $4.6 billion in fraudulently-obtained student loans were canceled, potentially damaging their credit scores and borrowing capacity despite debt forgiveness. This reporting discrepancy could impact consumer lending markets and borrower financial health, as credit bureaus continue reflecting canceled debt as outstanding obligations.

Content sourced from MarketWatch. Not financial advice.