Education Department Stuck With Trustee Public Service Loan Suit

A bankruptcy trustee’s claims that the US Department of Education illegally denied his request to forgive his student loan debt will continue because the agency’s denial was “arbitrary and capricious,” a federal judge said.

Judge Catherine Henry of the US District Court for the Eastern District of Pennsylvania granted Roland Ramos-Cardona’s summary judgment motion in part in a Thursday opinion, remanding the suit to the department for further administrative proceedings.

Ramos-Cardona alleged the Education Department’s inconsistency in enforcing the Public Service Loan Forgiveness program violates the Administrative Procedure Act. Henry said she found it necessary to remand the case because ...