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450K borrowers say they were ripped off. Their student loans are being erased
The long legal battle to erase the debts of nearly half a million federal student loan borrowers who say they were defrauded by their colleges is finally coming to an end, after a recent court ruling in a lawsuit that has spanned three presidential administrations.
The class-action suit, originally filed against the first Trump administration seven years ago, centered on a federal rule known as borrower defense. The rule is supposed to allow borrowers to petition the U.S. Education Department to erase their debts if a school has lied to them — about things like their job prospects, their credits' transferability or their likely salary after graduation.
Thousands of student-loan borrowers are getting long-awaited debt cancellation from a $23 billion settlement
Student-loan forgiveness is finally here for thousands of borrowers.
A federal court denied the Department of Education's request to delay student-debt relief for borrowers entitled to relief under the Sweet vs. McMahon settlement. The settlement has allowed for $23 billion in relief for over 500,000 borrowers defrauded by their schools.
The Trump administration tried to delay student loan forgiveness for nearly 180,000 borrowers. A federal court said no
The Education Department must proceed with discharging student loan forgiveness for a group of eligible borrowers in a settlement case after a recent ruling from a federal appeals court.
The Friday decision marked a win for about 179,000 borrowers in the drawn-out Sweet v. McMahon settlement. In the ruling, the U.S. Court of Appeals for the Ninth Circuit rejected an appeal from the Department of Education to alter the initial settlement timeline since they hadn't expected a large amount of applications for loan relief. The borrowers applied in a five-month window stretching from June to Nov. 2022.
Appeals court rejects Education Department’s bid to delay borrower defense decisions
The decision is just the latest in the Sweet v. McMahon case, which was originally filed in 2019 under the first Trump administration. At the time, borrowers alleged that the Education Department was stonewalling their applications for borrower defense.
As of this April, the Education Department had discharged or refunded $12 billion for almost 300,000 borrowers under the settlement, the agency said in recent court documents.
Education Department Must Wipe Out Student Loans For 500,000 Borrowers Under Settlement, Says Court
Borrowers scored a major victory on Friday after a federal appeals court rejected a challenge to a landmark settlement agreement, and required the Education Department and Secretary of Education Linda McMahon to continue discharging the federal student loans for more than 500,000 Americans. The ruling represents the department’s latest loss in the long running saga over the Sweet v. McMahon settlement.
1.5 million borrowers were promised student loan relief. A new lawsuit wants proof it happened
A new lawsuit alleges the U.S. Department of Education may not be discharging certain federal student loans as previously promised.
The lawsuit, filed by the Project on Predatory Student Lending, seeks data showing which loans have actually received discharges.
Feds promised $23B in student loan forgiveness for 1.5M borrowers. Lawsuit asks, did it happen?
Years after the Department of Education promised to erase more than $23 billion in debt for 1.5 million student loan borrowers, a new lawsuit questions whether that promise was ever kept.
New Student Loan Lawsuit Filed on Forgiveness Promised to Over a Million
A new lawsuit filed against the U.S. Department of Education (ED) alleges the agency has failed to provide transparency regarding the status of promised student loan discharges affecting more than 1.5 million borrowers.
The legal challenge raises questions about whether billions of dollars in approved debt relief have actually been delivered.
After failing to deliver on promises of rewarding careers, some for-profit schools leave students with lifetime of debt
Students seeking better jobs turn to for-profit colleges, often taking out federal loans only to discover many programs misled them with degrees that can be essentially worthless.
Ninth Circuit presses feds over bid to pause expired student loan relief deadline | Courthouse News Service
“‘The government agreed to this settlement three years ago. It is fair to hold them to their word.” Plus, Ellis argued the government has pulled the rug out from under those who applied for relief back in 2022, some of whom have had their credit wrecked while their loans remain in forbearance. The panel did not indicate when it would rule.”’