- The U.S. Department of Education has agreed to cancel the student loans of around 200,000 people who had brought a class action lawsuit against it.
- The former students claimed they were stuck with federal debts by schools that had been found to engage in misconduct.
The U.S. Department of Education has agreed to cancel the student loans of around 200,000 people who brought a class action lawsuit against the government, claiming they were stuck with federal debts from schools that were found to have misled them.
Under the terms of the Sweet v. Cardona settlement, 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.
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