On Thursday, the nation's highest court ruled that $6 billion in student debt relief for 200,000 borrowers — a result of a settlementThe lawsuit was first filed in 2019 under former President Donald Trump on behalf of borrowers with stalled borrower defense claims, or claims borrowers can file if they believe they were defrauded by the school they attended. If approved, their debt would be wiped out.last summer, and a federal judge signed off on the relief in November.
"The application for stay presented to Justice Kagan and by her referred to the Court is denied," the Supreme Court wrote in itsThe three schools argued in their legal filing that they were not given"due process" to respond to the claims in the settlement, and they said they suffer reputational harm from the settlement.
"The whipsawing that would occur if the settlement were stayed would cause confusion among the affected borrowers, loan servicers, and the public and would undermine the Department's ability to effectively implement the borrower-defense program," it said. This decision is separate from Biden's broad plan to cancel up to $20,000 in student debt for federal borrowers. That plan was paused in November due to two conservative-backed lawsuits seeking to permanently block the relief, and the Supreme Court heard oral arguments for the cases in February. It's expected to issue a final decision on the legality of the broad debt relief plan by June.
Is this for ITT Technical Institute Schools and their Graduates?
מִקֵּ֥ץ שֶֽׁבַע־שָׁנִ֖ים תַּעֲשֶׂ֥ה שְׁמִטָּֽה׃ Every seventh year you shall practice remission of debts (Shemitah) Deuteronomy 15:1
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