Los Angeles, Calif. – Two disabled women have filed a federal lawsuit against the U.S. Department of Education and Linda McMahon, in her official capacity as Secretary of Education, alleging that the Department unlawfully refused to review their applications for disabled student loan relief. The plaintiffs are represented by the Legal Aid Foundation of Los Angeles (LAFLA).

Under the Higher Education Act, the Department of Education must discharge federal student loans for borrowers who have a “total and permanent” disability. The law defines this as a condition that is expected to last at least five years or result in death and that prevents them from substantial work.

Plaintiff Nicole Coe suffers from lupus, a chronic autoimmune condition with debilitating symptoms. She first applied for a disability discharge in November 2024. Plaintiff Mary Anderson, age 73, has been unable to work for years due to a terminal heart condition and first applied for relief in February 2025.

Over the past year, the Department has forced both plaintiffs to jump through numerous hurdles, including completing two applications with doctors’ certifications dated within 90 days prior to submission, as required. However, in December 2025, the Department closed their applications without review, under an alleged new policy that instead requires doctors’ certifications to be dated within 90 days of the Department’s internal processing date. The lawsuit alleges that this policy directly contradicts existing regulations and unfairly punishes borrowers for the government’s own delays.

“The Department of Education’s failure to properly process discharge applications from vulnerable and sick borrowers is reprehensive,” said LAFLA senior attorney Robyn Smith. “Our clients’ year-long struggle to comply with the Department’s arbitrary, unlawful, and incomprehensible demands has reached the point of exacerbating their life-threatening conditions. We are simply asking the Department to review their applications on the merits, as is their right.”

Because of the Department’s actions, both women now face resumed collection efforts on their student loans unless they each submit a third application and obtain yet another doctor’s certification.

The lawsuit also challenges other Department practices, including:

• Disregarding disability discharge applications submitted during the rollout of its new processing system (between November 2024 and mid-2026), without informing applicants unless they called the Department.
• Failing to instruct loan servicers to stop collections for the entire time a disability discharge application is pending, as required by federal law.

The plaintiffs seek an order requiring the Department to reopen and review their applications on the merits, as well as an order vacating the unlawful policies. A copy of the complaint is available here.

Students who believe they may have been similarly harmed may contact the Student Loan Empowerment Network at https://studentloanhelp.dfpi.ca.gov.