200,000 People Will Get Student Loan Debt Relief

The U.S. Department was embroiled in a class-action lawsuit, which culminated in $6 billion of student loans being canceled. The lawsuit claimed that the department of education ignored student loan cancellation claims. 

The case, Sweet v. Cardona represented a whopping 264,000 people. According to the group’s 2019 lawsuit, “For-profit schools such as Corinthian Colleges and DeVry University delivered worthless products that left students with thousands of dollars in debt, damaged credit, and depleted access to further student aid while lying about prospects for high-paying jobs.”

The US Education Secretary Miguel Cardona praised the ruling. He stated, “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.”

President Biden is still mulling over plans to cancel student debt more broadly. His last proposal was to eliminate $10,000 per borrower making less than $150,000 per year. Members of his own party, like Alexandra Ocasio-Cortez, have pushed for Biden to raise the amount to $50,000 per borrower.

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