Student-loan forgiveness is finally here for thousands of borrowers.
A federal court denied the Department of Education’s request to delay student-debt relief for borrowers entitled to relief under the Sweet vs. McMahon settlement. The settlement has allowed for $23 billion in relief for over 500,000 borrowers defrauded by their schools.
It was reached in 2022 under the Biden administration, and while batches of borrowers have received relief, thousands more have been waiting. The court’s latest decision led to automatic relief for an additional 170,000 borrowers, according to the Project on Predatory Student Lending, an advocacy group representing borrowers in this case.