Disabled Borrowers Sue Trump Admin. Over Denied Debt Relief

Two women with disabilities accused the Education Department in a new lawsuit of unlawfully closed their applications for debt relief without proper review. 

They argue that under federal law, loans must be discharged for anyone with a “total and permanent” disability that prevents them from completing “substantial work.” And since both women would likely meet these standards, refusing to consider their applications for relief is illegal, the lawsuit argues. 

The first plaintiff, Nicole Coe, has been diagnosed with lupus, a chronic autoimmune disorder. The second, Mary Anderson, has a terminal heart condition that has left her unable to work for years. Both are represented by the Legal Aid Foundation of Los Angeles.

The applications, submitted in November 2024 and February 2025, respectively, included necessary doctors’ certifications that were completed within 90 days of the applications’ filing. But in December 2025, the department said that the certifications could not be considered as they were not completed within 90 days of when the department began the application. The lawsuit alleges that not only is the department potentially denying borrowers legally mandated relief, but it is also preventing their applications from being considered for delays outside of their control. 

“The Department of Education’s failure to properly process discharge applications from vulnerable and sick borrowers is reprehensive,” LAFLA senior attorney Robyn Smith said in a news release. “We are simply asking the Department to review their applications on the merits, as is their right.”

LAFLA wants the court to pause the plaintiffs’ payments and any other efforts to collect on their loans until ED reopens and reviews their applications on the merits.