Federal Government Agrees To Cancel Student Debt For 200,000 People
The U.S. Department of Education settled a class action lawsuit arguing that the agency was ignoring students’ loan cancellation claims — a move that resulted in the nixing of $6 billion in debt.
The case — Sweet v. Cardona, formerly Sweet v. DeVos — represented 264,000 people constituting the “current borrower defense backlog,” according to a press release from the Project on Predatory Student Lending. The group’s 2019 lawsuit contended that for-profit schools such as Corinthian Colleges and DeVry University “delivered worthless products that left students with thousands of dollars in debt, damaged credit, and depleted access to further student aid” while lying about prospects for high-paying jobs.
Education Secretary Miguel Cardona lauded the settlement, which the U.S. District Court for the Northern District of California will independently review before approval.
“Since day one, the Biden-Harris Administration has worked to address longstanding issues relating to the borrower defense process,” Cardona said in a statement about the settlement. “We are pleased to have worked with plaintiffs to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve plaintiffs’ claims in a manner that is fair and equitable for all parties.”- READ MORE
Responses