Some 200,000 students who claim they were defrauded by educational institutions in the United States are set to have their student loans canceled after the Biden administration this week settled a $6 billion class-action lawsuit.
The settlement was filed (pdf) with the U.S. District Court for the Northern District of California on Wednesday.
The 2019 lawsuit against the Department of Education made by seven plaintiffs on behalf of student loan borrowers asked for loan cancellation, also known as borrower defense applications. The claims were allegedly ignored by both the Trump and the Biden administrations.
According to the lawsuit, the department sent out tens of thousands of rejection letters to borrower defense claimants in 2020, in which many former students were denied relief due to a “lack of evidence” according to the lawsuit….