As federal relief dollars for schools run out, states should respond by increasing funding for education, U.S. Education Secretary Miguel Cardona said in an interview.
College students often take out loans they don't need, due in part to unhelpful communication from schools and loan servicers. California is trying to improve communication to ease that burden.
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.
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.