The U. S. Department of Education has agreed to cancel $6 billion of student loans for 200,000 student loan borrowers. Here’s what you need to know. The Biden administration is continuing its commitment to cancel student loans for millions of student loan borrowers. As part of a settlement agreement in a class-action lawsuit, Sweet v. Cardona, the Education Department will provide full student loan cancellation to approximately 200,000 student loan borrowers who were misled by their college or university. Borrowers will also get a refund of student loan payments made and deletion of any related negative marks on their credit report. It’s a major win for student loan borrowers who have been seeking student loan relief for several years. The announcement comes at a critical juncture as President Joe Biden considers wide-scale student loan forgiveness for millions of student loan borrowers. The original class-action lawsuit included 264,000 student loan borrowers who attended more than 150 colleges and universities such as the University of Phoenix and DeVry. Before this major announcement on student loan forgiveness, Biden canceled $25 billion of student loans. This amount included $7.9 billion of student loan cancellation for 690,000 borrowers under borrower defense to student loan repayment and school closures. Earlier this month, the Biden administration canceled $5.8 billion of student loans for 560,000 student loan borrowers. Borrower defense to repayment is an Obama-era rule that allows student loan borrowers to get student loan cancellation if their school closes or if they were misled by their college or university. Borrower defense to repayment has been featured prominently in lawsuits regarding for-profit schools.“Since day one, the Biden-Harris Administration has worked to address longstanding issues relating to the borrower defense process,” Cardona said. “We are pleased to have worked with plaintiffs to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve plaintiffs’ claims in a manner that is fair and equitable for all parties.”Student loan borrowers who participated in this class-action lawsuit will get their student loans canceled. Here’s how to know if you qualify:What if you didn’t participate in this class action lawsuit but you believe you were misled by your college or university? You can apply for borrower defense to student loan repayment online. To qualify, you must demonstrate that:Under borrower defense to repayment, you can get partial student loan forgiveness or total student loan forgiveness. If you don’t qualify for borrower defense to repayment, remember that there are other ways to get a lower student loan payment, including:
All data is taken from the source: http://forbes.com
Article Link: https://www.forbes.com/sites/zackfriedman/2022/06/23/education-department-cancels-6-billion-of-student-loans-for-200000-borrowers/
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