A federal appeals court last month issued a ruling erasing $23 billion in student loan debt for an estimated 450,000 borrowers duped by false promises made by more than 150 for-profit colleges. The debt ruling for full settlement relief came on July 17 in a unanimous decision by a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit in the case known as Sweet v. McMahon. “It makes clear that the federal government cannot simply disregard borrowers’ rights and its own legal obligations without consequence,” said Eileen Connor, the president and director of The Project on Predatory Student Lending, an advocacy organization that brought the lawsuit in 2019. The case centered on a federal rule known as borrower…
Insolvency Guardian
Insolvency Services & Bankruptcy Advice
