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Education Department Cancel $6 Billion In Student Loan

With the constant chatter surrounding student loan debt relief, it seems that an additional 200,000 borrowers have just received notice their loans have been canceled. The Department of Education announced that it will cancel up to $6 billion of student loan debt as a result of the Sweet V Cordona 2019 lawsuit.

The class-action lawsuit against the government alleged that students were stuck with student loans because schools misled them.

According to CNBC, under the terms of the agreement, the Education Department will immediately approve around $6 billion in debt forgiveness. The 200,000 borrowers eligible for the relief will get full cancellation of their debt, refunds of amounts paid, and repair to their credit. ”The lawsuit was brought against the Trump Administration. The plaintiffs stated their requests to have their student loans canceled went ignored.

The case was titled Sweet V. DeVos, but was later modified when U.S. Secretary of Education Miguel Cardona replaced Betsy Devos under the Biden Administration.

Biden Talks Student Loan Debt

As for other student loan holders, Biden spoke about the debt in April. Biden stated he wasn’t considering canceling $50,000 worth of debt but was taking a look at reducing debt in some way.

I am considering dealing with some debt reduction. I am not considering $50,000 debt reduction. But I’m in the process of taking a hard look at whether or not there are going – there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks.

If you recall, the Education Department decided to have $415 million of student loan debt erased. This included 1,800 former DeVry University students who received “approximately $71.7 million in full borrower defense discharges” earlier this year.

It was determined the university gave widespread misleading information about job placement rates.

As of now, there is a current freeze on student loan repayment until August 2022.