Student debt levels in California were nearly flat compared to the year before, matching a national trend.
Amid for-profit college closures, more student borrowers apply to the U.S. Department of Education to cancel their federal education loan debts.
An interactive explainer from EdSource
The lawsuit follows similar actions by other states and California lawsuits against other for-profit colleges and student loan companies on behalf of student debtors.
A new report ranks California among the nation's worst in teaching about student loans, credit cards and personal finance.
Among California's 2016 graduates, 53 percent borrowed for education and their average total debt was $22,744. Only Utah and New Mexico had lower loads.