Gaussoin Claims Education Dept Illegally Rejected His Loan Discharge

Student Defense filed a lawsuit in federal court on Wednesday, challenging the U.S. Department of Education’s decision to deny student loan discharges to borrowers who attended recently closed colleges. The suit, filed on behalf of Kendrick Gaussoin and potentially thousands of other borrowers, claims the Trump administration is illegally refusing to apply eligibility rules expanded by the previous administration.

Gaussoin was a student at Brooks Institute in Ventura, California, when the private, for-profit school shut down in August 2016. He had taken an eight-month leave of absence in December 2015 to work as a photographer. Under standard federal rules, borrowers must have been enrolled or left within six months of a closure to qualify for loan cancellation. Gaussoin’s leave placed him outside that window, leaving him with nearly $22,000 in debt and no degree.

In January 2025, then-Under Secretary James Kvaal expanded the eligibility look-back period for borrowers from several closed schools, including Brooks. The order stated that borrowers enrolled as of May 6, 2015, would qualify for discharge and refunds of past payments. Kvaal cited the schools' closure under exceptional circumstances as the reason for the leniency.

Gaussoin applied for the discharge on August 23, 2026, citing the expanded rules. On August 31, the Department of Education denied his request. A denial letter stated he did not meet the traditional, pre-Biden eligibility requirements. Department spokesperson Ellen Keast told NPR that the Biden administration used the authority to shift debt onto taxpayers. Keast said the expansion was inappropriate and implemented days before the administration left office.

Critics note that the Trump administration used similar authority in 2019 to expand eligibility for borrowers from the Art Institute of Colorado and the Illinois Institute of Art. Education Secretary Betsy DeVos stated at the time that students deserved to be made whole. Bonnie Latreille, a former top official at the Federal Student Aid office, said the current denials raise legal flags. She said department officials instructed her staff to hold off on processing discharges under the new rules without approval from the incoming Trump team.

Gaussoin’s mother, Christine Gaussoin, took out Parent PLUS loans to help pay for her son’s education. She now owes about $28,000 and was also denied discharge this month. She said the school promised her son’s loans would cover his costs, but the institution later requested more money. Both Gaussoins work in retail and are carrying the debt while attempting to finish their education.

The Department of Education did not respond to a request for its legal justification for ignoring the 2025 rule changes. The lawsuit asks the court to determine if the administration can abandon the expanded eligibility window without providing a reasoned explanation to the public.