- Case
- Good v. U.S. Department of Education
- Court
- U.S. Court of Appeals for the Tenth Circuit
- Citation
- 121 F.4th 772 (10th Cir. 2024) (No. 22-3286), cert. denied, No. 24-992 (U.S. Mar. 23, 2026)
- Decided
- November 12, 2024
- Bottom line
- Federal student loan borrowers in the Tenth Circuit can pursue FCRA furnisher claims against the Education Department and MOHELA over reporting errors.
Background
Jeffrey Good found errors on his credit reports, including what he alleged were duplicate delinquent tradelines for the same student loan accounts. Experian and Equifax corrected them after he disputed; TransUnion did not. He alleged that the Department of Education, which held his loans, and the Higher Education Loan Authority of the State of Missouri (MOHELA), which serviced them, failed to take corrective action required of furnishers under the FCRA.
Good sued in Kansas state court, and the case was removed to federal court. The district court dismissed the claims against the Department on the ground that the FCRA did not waive federal sovereign immunity. It also dismissed the claims against MOHELA, holding that MOHELA was an arm of the State of Missouri entitled to share the state’s Eleventh Amendment immunity.
What the court held
The Tenth Circuit reversed on both points in a published opinion by Chief Judge Holmes, joined by Judges Matheson and Eid.
As to the Department, the parties agreed that reversal was required by the Supreme Court’s February 2024 decision in Department of Agriculture Rural Development Rural Housing Service v. Kirtz, which held that the FCRA waives the federal government’s sovereign immunity.
As to MOHELA, the court undertook a detailed arm-of-the-state analysis, noting the question had divided courts. A central factor was the effect of a judgment on the state treasury; the court concluded Missouri would not be legally liable for a judgment against MOHELA. Weighing the factors, it held MOHELA “is not an arm of the state entitled to Eleventh Amendment immunity.” The court also gave little weight to a position Missouri took in a different Supreme Court case about MOHELA’s status, which concerned standing rather than immunity.
MOHELA petitioned the Supreme Court, which denied certiorari on March 23, 2026.
Our take
Good is a practical win for student loan borrowers. Federal student loan reporting errors are common, especially during servicing transfers, and borrowers often cannot get them fixed through the bureaus alone. Until Kirtz, the government argued it could not be sued under the FCRA at all. Good applies Kirtz and then closes a second door by holding that a major state-created servicer cannot claim the state’s immunity.
The arm-of-the-state question is fact-specific, and different servicers and different states will produce different results. Other courts have reached different conclusions about MOHELA and similar entities, so outcomes may vary outside the Tenth Circuit. The Supreme Court’s denial of review leaves that disagreement in place for now.
The decision is about immunity, not the merits. Good still must prove that the Department or MOHELA received notice of his dispute through a consumer reporting agency and failed to conduct a reasonable investigation under § 1681s-2(b).
What it means if your report is wrong
If your student loans are reported inaccurately, for example as duplicated, delinquent during a deferment or forbearance, or with the wrong servicer, dispute the entries with each credit bureau so that the furnisher’s duty to investigate is triggered. Keep records of your servicer communications and any transfer notices. In Kansas, Colorado, Oklahoma, New Mexico, Utah, and Wyoming, Good means MOHELA cannot rely on state sovereign immunity, and the Department of Education cannot rely on federal sovereign immunity, to avoid an FCRA claim.
A free case review can assess how this ruling affects a claim, and there is no fee unless we win.
Sources
Primary
- Opinion (Tenth Circuit, via Justia)
- Opinion (CourtListener)
- Supreme Court docket No. 24-992 (certiorari denied Mar. 23, 2026)
Commentary we reviewed
- Case page and briefs: Good v. U.S. Department of Education (Public Citizen)
- News: DOE, Missouri loan entities lack immunity in credit report suit (Bloomberg Law)
Updated November 1, 2026. "Our take" is the firm's opinion. This page is general information, not legal advice, and later decisions may change the law.