Why These Student Loans Aren’t Forgiven After Colleges Shut Down: NPR


Kendrick Gaussoin stands outside near his home in Winsted, Connecticut. A tree stands behind him.

Kendrick Gaussoin near his home in Winsted, Connecticut. As part of a Biden-era change, Gaussoin’s federal student loans should have been erased.

Raquel C. Zaldívar for NPR


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Raquel C. Zaldívar for NPR

Kendrick Gaussoin remembers it very well: that August day, ten years ago, when his dream of becoming a professional photographer suddenly collapsed.

He was driving to the Ventura, Calif., campus of the Brooks Institute, the private, for-profit university where he was studying for a bachelor’s degree in photography. When he pulled up, he was surprised to find classmates and friends crowding outside. The school doors were chained.

“It was very worrying,” he recalls. “Everyone was crying. Everyone felt like they had lost everything.“

Brooks had been suddenly shut down by its parent company, leaving Gaussoin and some of her classmates with enormous student debt and no clear path to a degree.

“I was completely discouraged,” Gaussoin remembers. “I pretty much gave up and spent the last nine years doing my best to move forward.“.

Now, however, Gaussoin is revisiting what happened to him at Brooks – and trying to get his student loans erased.

For more than three decades, federal law has required the U.S. Secretary of Education to forgive the debts of qualified borrowers whose schools suddenly close, a process known as “closed school discharge.” But a lawsuit filed Wednesday against the Department of Education claims the Trump administration is illegally refusing to fully follow all of the program’s rules.

The lawsuit was filed in federal court by Student Defense, a nonprofit borrower advocacy group, on behalf of Gaussoin and potentially thousands of other borrowers.

The Department of Education told NPR it is maintaining implementation of the program.

How does the exit from closed schools work?

According to a study by the nonpartisan U.S. Government Accountability Office, between 2010 and 2020, more than 1,100 colleges closed, including Brooks, leaving 246,000 borrowers eligible for a closed school exit.

To qualify for a traditional discharge, borrowers must either 1) have been enrolled at the time of the closure or 2) have left school no more than six months before the closure.

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