$6 Billion Student Loan Debt Settlement , Allowed by Supreme Court.
NBC News reports that on April 13, the
Supreme Court rejected a request made by three colleges to challenge the class-action settlement.
The schools that made the request are
Everglades College, Lincoln Educational Service Corp. and American National University. .
The secretary’s claimed authority amounts to nothing less than the power to cancel, en masse, every student loan in the country, Challenging schools, via court papers.
But the Justice Department determined
that the settlement "neither adjudicates
any rights or imposes any duties or
liabilities upon the relevant schools.".
The settlement, which is
unrelated to President Biden's efforts
to eliminate student loan debt, .
The settlement, which is
unrelated to President Biden's efforts
to eliminate student loan debt, .
stems from loans borrowers say were taken out after being misled by the schools.
The settlement could be worth over $6 billion, allowing thousands of loans to be canceled.
It was approved by U.S. District Judge
William Alsup in November.
The colleges were previously placed on a list by the federal government linked to "substantial misconduct.".
According to the Justice Department, approximately 3,800 of the loans were affiliated with the three colleges.
400 of them have been discharged so far