With the Supreme Court’s decision not to halt it, a settlement that will permit the forgiveness of thousands of dollars’ worth of student loan debt will soon go into effect. The universities’ objection to the settlement that was brought before the Supreme Court was quickly and soundly dismissed by that court.
It is crucial to highlight that the plan to cancel student loan debt that was proposed by former Vice President Joe Biden is unconnected to the issue that is presently pending before the Supreme Court, on which a ruling is anticipated to be rendered within the next two months.
The agreement resolves a class-action lawsuit in which borrowers claimed that they had taken out loans based on deception made by their schools, primarily for-profit universities. The litigation was settled for an undisclosed amount.
It’s possible that the settlement will be worth more than $6 billion, and it was approved by a judge in the United States District Court back in November. The administration has already started working to put the deal into effect.
