MAJOR Student Loan Debt Cancellation Expected — Here’s Who Will Qualify
(LibertySociety.com) – The US Department of Education (DOE) recently proposed a $6-billion settlement on a 2019 class-action lawsuit involving more than 200,000 students who felt their educational institutions engaged in misconduct. The plaintiffs in Sweet v. Cardona stated the for-profit colleges misrepresented their programs, promised unattainable earnings, and lied about credit transferability. Due to this, their student loans will likely be canceled.
Under the terms of the settlement agreement, the Education Department will cancel nearly $6 billion in federal student loan debt for over 200,000 borrowers. https://t.co/gndvRGZul5
— Forbes (@Forbes) June 23, 2022
When they pushed the DOE for a settlement agreement in 2020, the government sent out “blanket denials” to thousands of students claiming there wasn’t enough evidence to support their claims. The students pushed back, stating the education department was acting in bad faith with the rejections. A judge agreed there should be an investigation after the government sat on the case for years while students had their credit wrecked.
On June 22, both the plaintiffs and defendant submitted a proposed settlement to the court, which will stand for approval on July 28. If approved, the order will discharge billions of dollars in federal loans for the students involved in the class action. These institutions involved in the case include Brooks Institute of Photography, ITT Technical Institute, and Salter College.
There is a second group of 64,000 students seeking relief as well, and more people who may have similar claims can ask to be considered for the debt discharge until the settlement deadline in July.
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