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Student loan settlement, forgiveness overview:
- Who: The Supreme Court will not block the settlement of a class action lawsuit benefiting student loan borrowers who say they were defrauded.
- Why: The court declined to uphold a petition from some of the colleges named in the settlement.
- Where: The student loan settlement applies to attendees of certain U.S. colleges.
The Supreme Court will not block the settlement of a class action lawsuit that will deliver $6 billion in student loan forgiveness to individuals across the country.
On April 13, the country’s highest court declined to block the settlement of a class-action lawsuit brought by student loan borrowers who say they’ve been defrauded by their schools, CNBC reported.
More than 150 schools, mostly for-profit institutions, were involved in the settlement. The claims go back to about 2015, when the U.S. Department of Education was flooded with requests for loan forgiveness from students who said their school had misled them.
The government has the authority to cancel federal student loan debt when a borrower’s school is found to have engaged in misconduct. After the action dragged on, borrowers ended up filing a class action lawsuit against the department in 2019 to force faster relief.
By 2022, borrowers and the government had reached a settlement.
Schools petitioned Supreme Court
However, three of the universities — Lincoln Educational Services Corp., American National University and Everglades College Inc. — petitioned the Supreme Court to block the settlement, arguing they were denied due process and that it harms their reputation.
The justices’ latest decision means the government can continue delivering on the $6 billion loan forgiveness settlement.
“Today’s swift and decisive action from the highest court should end, once and for all, any ongoing debate about the legitimacy of this settlement,” Project on Predatory Student Lending President and Director Eileen Connor told CNBC.
If a borrower attended one of the colleges in the settlement and applied for a borrower defense loan discharge on or before June 22, 2022, they should be entitled to automatic relief.
Even if their application was previously denied, they should now qualify, CNBC reported. Borrowers eligible for automatic relief will likely get the cancellation no later than Jan. 28, 2024, and some may even see some cash as part of the agreement.
Are you impacted by this student loan forgiveness settlement? Let us know in the comments!
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30 thoughts onSupreme Court declines to block student loan settlement in fraud suit
How do I find a list of schools?
I attended MTI college.. add me please
They say I owe 100,000 in student loans. I didn’t graduate from college yet .
You should add University of Phoenix to that list. I was misled by them and now have to pay back $21,000 with a degree that is worthless.
I agree I’m in the same boat
I attended University of Phoenix. My loans are deffered due to hardship can’t pay ,don’t make enough income and the school gave me fraudulent hopes. I went through a Master program in Education and I finished except for student teaching and I was never given the diploma nor assistant in arranging student teaching and told I had to take 30 more credits due to a change in state teaching requirements and it would cost more money. My Dream was crushed.
Is Ashford University one of them? They no longer exist and I still am paying back a balance to them.
Same here
They cheated me also wish I knew if on this
I am also a Ashford grad…I wonder if they are on the list.
Ashford is on the list but how do we apply
You can still file a Borrower Defense to Repayment. There’s a Reddit and Facebook Borrower Defense group with a lot of good information. I applied last week, so I am, unfortunately, not part of the lawsuit.
I was impacted by the student loan forgiveness. The school I initially attended had its accreditation revoked and I am responsible for close to $7500 student loans from that institution. My taxes were also taken and school loan was paid. I would love my money back!
since 2002 i have never been able to make the payments on my student loans totally $35,000; i was just perpetually in deferment. when i defaulted once in 2015, i had to pay one hundred bucks a month for an entire year to get it back in good standing, yet that $35,000 more than doubled to 75,000!!! then i was frauded by a company who charged me monthly to do something the dept of education doesn’t even charge for!!! i am unemployed due to a disability and have been filling out SSDI paperwork, but im in fear of that costing me more! please help!
Yes, I attended Le’Cordon Bleu in Tucker Georgia, paying 60k in student loans with no acceleration
I was impacted by the student loan forgiveness. The school I initially attended had its accreditation revoked and I am responsible for close to $50K in student loans from that institution. It is the Illinois Institute of Art Culinary School in Chicago.