Student loan forgiveness: Supreme Court allows $6 billion student loan debt settlement
The U.S. Supreme Court has cleared the way for thousands of student loan debts to be canceled.
NBCNEws.com reported SCOTUS declined to block a class-action settlement related to loans that borrowers claim should be canceled because they were taken over based on misrepresentation made by their schools. The schools, mostly for-profit institutions, had fought the claims.
The settlement could be worth more than $6 billion.
The settlement is unrelated to President Joe Biden’s larger efforts to forgive student loan debt, plan that covers some $430 billion in student debt for about 40 million borrowers.
That matter is also before the Supreme Court with a ruling due in the coming months.