Over 200,000 federal student loan borrowers included in a class action lawsuit will have their federal student loans forgiven as a result of a settlement that has been given final approval by the judge overseeing the case. Borrowers included in the settlement will have their loans completely forgiven.
The settlement is between the Department of Education (ED) and the two organizations representing borrowers in the case, the Project on Predatory Student Lending (PPSL) and Housing and Economic Rights Advocates (HERA). In addition to the more than 200,000 who will be eligible to have their loans canceled immediately, more than 60,000 borrowers will receive decisions on whether their loans will be forgiven in the coming months.
The case, Sweet v. Cardona, centered on allegations that over 150 colleges and universities defrauded students by promising earning and employment outcomes they knew they could not deliver. The settlement will forgive over $6 billion in federal student loans.
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