US Department of ED Announced it’s Forgiving $6 BILLION Worth of Loans Following a Class Action Lawsuit
Bloomberg recently reported that the US Department of Education agreed to erase nearly $6 billion in student finances for consumers who filed a class-action suit against the government, mentioning for-profit universities misled them.
Virtually 200,000 customers are obtaining borrowers debt relief using the Sweet v. Cardona negotiation https://predatorystudentlending.org/wp-content/uploads/2022/06/Sweet-Settlement-Agreement.pdf. This indicates they’ll obtain their student loans from the schools cancelled, reimbursements for any kind of repayments, they made as well as upgraded credit score reports.
“This momentous proposed settlement will deliver answers and certainty to borrowers who have fought long and hard for a fair resolution of their borrower defense claims after being cheated by their schools and ignored or even rejected by their government,” Eileen Connor, the director of the Project on Predatory Student Lending said in a statement to Bloomberg. She also stated the decision “charts a borrower defense process that is fair, just, and efficient for future borrowers.”
The college students asserted institutions like ITT Technical Institute, the Art Institute, DeVry University, Brooks Institute, University of Phoenix and countless more guaranteed work, better careers upon graduation, which never happened. The lawsuit was filed in June 2019, stating that the Trump Administration “unjustifiably held back as well as unreasonably delayed” or mass denied borrower defense applications while former Secretary Betsy DeVos was head of Department of Education.
“Since day one, the Biden-Harris Administration has worked to address longstanding issues relating to the borrower defense process,” Secretary of Education Miguel Cardona said in a statement shared by Bloomberg. “We are pleased to have worked with plaintiffs to reach an agreement… that we believe will resolve plaintiffs’ claims in a manner that is fair and equitable for all parties.”