After the Supreme Court declined to block it, a settlement allowing the cancellation of thousands of student loan debts is set to take effect. The challenge against the settlement made by colleges was rejected by the Supreme Court in a brief order.
It’s important to note that this case is unrelated to President Joe Biden‘s plan to forgive student loan debt, which is also currently before the Supreme Court with a decision expected within the next two months.
The settlement pertains to a class-action lawsuit involving loans that borrowers allege were taken out based on misrepresentation made by their schools, particularly for-profit institutions.
The settlement, which was approved by U.S. District Judge William Alsup in November, could be worth more than $6 billion. The government has already begun implementing the settlement.
U.S. Supreme Court won't halt $6 billion student debt settlement https://t.co/ce0lbbs4Ag pic.twitter.com/MQwWxocJbk
— Reuters (@Reuters) April 13, 2023
