Supreme Court rejects bid to block major class-action settlement on student debt relief

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The Supreme Court rejected an effort by three colleges to halt a class-action settlement that’s set to cancel more than $6 billion of federal student loan debt owed by borrowers who say they were defrauded.

The Biden administration’s existing student debt relief program is tied to the Covid-19 national emergency under a 2003 law known as the HEROES Act. | Jemal Countess/Getty ImagesThe Supreme Court on Thursday rejected an effort by three colleges to halt a class-action settlement that’s set to cancel more than $6 billion of federal student loan debt owed by borrowers who say they were defrauded.

The three college operators were challenging the same law — the Higher Education Act’s “compromise” authority — that is widely seen as a fallback option for Biden. The administration’s existing student debt relief program is tied to the Covid-19 national emergency under a 2003 law known as the HEROES Act.

The deal is aimed at wiping out a backlog of hundreds of thousands of those applications, which are known as “borrower defense” claims. Some have languished at the department for years.had argued that the three colleges lacked standing to challenge the settlement in the first place, dismissing the schools’ claims of reputational harm as too speculative.on the idea that the class-action settlement is related to Biden’s broader debt cancellation program, calling them “entirely distinct.

But in the meantime it clears the Education Department to continue processing loan discharges for tens of thousands of borrowers.

 

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This statement regarding Biden's power to cancel student debt has nothing to do with this case. This was a law suit that was filed in 2019 and was just recently settled.

Where does the federal government get the authority to even offer student loans let alone cancel them. They have no business in this matter. It also goes to prove these young graduates are economic illiteratesGiven the massive level of federal that we have

Yay!

Was it trump university

It will be many more than 3 by the time it gets to court.

They were defrauded but by the schools

Imagine not wanting people to receive settlements after they have been defrauded. So many people in this country are so callous and don’t care that others are hurting. This lack of community will undo this country.

Let me guess… one of them hangs out in the Garden of Evil

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