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

The government canceled her student loans due to a scam — but $72,000 is still on her credit report 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 student debt owed by some 300,000 borrowers that should have been canceled, lawsuit claims A lawsuit claims the U.S. Education Department is inaccurately reporting student debt that should have been canceled years ago to credit bureaus. via For years, Mandy Woods diligently made payments toward her $65,000 in student debt, even though she considered the degrees she had earned to be “useless” and “very expensive” pieces of paper. Then one day in January 2025, Woods learned that the government was wiping out her loans after finding evidence indicating her school had misled students about their prospects after graduation and about how long it would take them to earn a degree.

Copyright ©2026 MarketWatch, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 The case against buying and holding stocks for the long term I’m 52 with $1.2M. I want to retire in 3 to 5 years.

Can I make this happen myself? I spend my time and money caring for my aging mother — yet she gave my brother $100,000. Should I pull back? 8% mortgage rates are ‘not an impossibility’ as the 30-year fixed rate surges Jillian Berman is assistant managing editor, news and enterprise, at MarketWatch, where she covers student loans and consumer debt.

Her book on the student-debt crisis, “Sunk Cost: Who's to Blame for the Nation's Broken Student Loan System and How to Fix It,” was published in 2025. You can follow her on Twitter @JillianBerman. Intraday Data provided by FACTSET and subject to terms of use.

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