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News Update

Biden to cancel billions in debt for defrauded students

A group of federal student loan borrowers agreed to a settlement with the U.S. Department of Education that would cancel $6 billion in federal loans for about 200,000 students.

As reported by the Sacramento Bee, the students affected attended schools that have been found to have defrauded students or violated state laws.

“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,” Education Secretary Miguel Cardona said in a statement.

In order for the settlement to be approved, the court has to review it and hear from members of the class-action lawsuit.