A dispute over closed-school relief
A former student of the now-shuttered Brooks Institute has sued the U.S. Department of Education, alleging that the agency denied him a federal student-loan discharge even though he qualified under the department’s rules. The proposed class-action case could affect other borrowers who attended the for-profit art college before it closed.
Kendrick Gaussoin attended Brooks Institute until the school closed in 2016. The school cited financial difficulties as it shut down, amid tighter oversight of for-profit colleges, according to Business Insider. Gaussoin later applied for a closed-school discharge, a federal program that can cancel eligible student loans when a borrower’s school closes before the student completes the program.
The lawsuit alleges that Gaussoin satisfied the conditions for the relief but that the Education Department rejected his application. Student Defense, a borrower-advocacy organization, is representing him in the case and is asking a court to require the department to apply its own standards.
“I qualify, but my application was denied anyway.” — Kendrick Gaussoin, as quoted by Business Insider
Gaussoin, who is now a father of two, said the denial left him continuing to make payments on loans connected to a college degree he did not receive. He described the remaining obligation as “tens of thousands of dollars of debt and no degree.”
Why the eligibility rules changed
A January 2025 decision expanded the period that could qualify borrowers for a closed-school discharge. That change made additional former Brooks Institute students eligible for cancellation, according to the report. The lawsuit contends that the department’s handling of Gaussoin’s application failed to honor that expanded eligibility.
The dispute matters beyond one borrower because federal student-loan balances can create consequences when payments fall behind. The report said borrowers who default may face actions including wage garnishment and the seizure of certain federal benefits, such as Social Security. Those collection tools apply to defaulted federal student loans and are separate from the question of whether a borrower qualifies for a discharge.
What the case seeks
Student Defense said the case is intended to enforce the department’s obligations toward borrowers covered by the 2025 decision. The organization’s vice president, Alexander Elson, said the department should not announce relief and then refuse to provide it to eligible students.
“The Department cannot make promises to students and then pretend that those promises do not exist.” — Alexander Elson, vice president of Student Defense, in a statement quoted by Business Insider
The allegations in the complaint have not been established in court, and the lawsuit’s filing does not guarantee that Gaussoin or other borrowers will receive a discharge. The case instead places the department’s treatment of Brooks Institute applications before the court and seeks enforcement of the eligibility standards described in the complaint.
- School: Brooks Institute, a for-profit art-focused college that closed in 2016.
- Relief at issue: A closed-school discharge of eligible federal student loans.
- Policy development: A January 2025 decision broadened the relevant eligibility period.
- Legal posture: A borrower-backed lawsuit alleges that qualifying applications were improperly denied.
| Key detail | Reported information |
|---|---|
| Borrower | Kendrick Gaussoin |
| College closure | 2016 |
| Advocacy group | Student Defense |
| Policy expansion | January 2025 |
