5th Cir.

Young v. Parchment, L.L.C.

July 23, 2026 ·25-60685 ·Published ·Jennifer Walker Elrod · By Aisha Johnson

The Fifth Circuit reversed a district court order denying a pro se litigant's motion to proceed in forma pauperis. The court held that financial eligibility, not the merits of the complaint, is the sole basis for granting in forma pauperis status.

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Background

Katie Young, a pro se litigant, filed a complaint alleging that Parchment, L.L.C. released her academic transcript without consent, violating federal privacy protections and the Family Educational Rights and Privacy Act. She moved to proceed in forma pauperis, asserting financial inability to pay the filing fee. A magistrate judge recommended denial, citing the lack of a private cause of action for FERPA violations. The district judge adopted this recommendation, denied the motion, and ordered Young to pay the filing fee or face dismissal. Young moved for reconsideration, which was denied, and then filed a notice of appeal from the order denying in forma pauperis status.

The court’s reasoning

The court explained that the district court erred by denying the motion based on the frivolity of the complaint rather than Young’s financial status. Under Section nineteen fifteen of Title twenty-eight, the determination of in forma pauperis eligibility must be based solely on economic criteria. Frivolity is a basis for dismissal under Section nineteen fifteen subsection e, not for denying in forma pauperis status. The court noted that while the district court had not entered a final judgment, it had jurisdiction to review the order under the collateral order doctrine. The court held that once a plaintiff establishes financial eligibility, the motion must be granted.

A district court’s determination of whether a party may proceed in forma pauperis must be based solely upon economic criteria.

Gibbs v. Jackson, 92 F.4th 566, 569 (5th Cir. 2024)

What it means going forward

Pro se litigants who demonstrate financial inability to pay filing fees must be granted in forma pauperis status regardless of whether their claims appear frivolous. Courts must address frivolity through dismissal proceedings under Section nineteen fifteen subsection e rather than denying in forma pauperis status.