student loan borrowers

Two student loan borrowers are suing the US Department of Education, claiming the department's mishandling of their loans damaged their credit. The case highlights broader frustration among borrowers over reporting errors, servicer problems, and the impact of loan-management failures on credit scores. The suit could add pressure on the department as it faces ongoing litigation and scrutiny over its handling of federal student loans.

The Supreme Court has taken up litigation concerning the SAVE income-driven student loan repayment plan and the federal student aid database behind it, putting billions of dollars in borrower balances back in question. The case tests the Education Department's authority to restructure repayment terms. Borrowers, servicers and policymakers are watching closely for how the ruling would reshape repayment options nationwide.