Biden Administration Agrees to Cancel $6 Billion in Student Debt Over Fraud Claims

The Biden administration has reached a settlement with greater than 200,000 college students who stated they had been defrauded, principally by for-profit schools, paving the way in which for the rapid cancellation of round $6 billion in pupil loans.

The proposed settlement, which should be accredited by a federal choose, was agreed to by a bunch of debtors who sued the Education Department in 2019 in the course of the Trump administration, as a result of they believed their fraud claims had been being ignored by the division. The division, underneath Secretary Miguel Cardona, has made it a precedence to resolve the longstanding backlog of borrower protection claims and agreed to the discharge late Wednesday.