06-24-2022, 01:48 AM
On Thursday the education secretary announced that about 264,000 student loan borrowers will be given about $7.5 billion in debt relief under a settlement of claims. The settlement was made in a class action lawsuit in which lead plaintiff Theresa Sweet sued Betsy DeVos, the Trump-era Education Secretary, for routinely ignoring Obama-era regulations and denying relief claims. Some say this will allow an avenue forward for students saddled with college debts due to predatory loan practices.
Eileen Connor, director of the Project on Predatory Student Lending, issued a statement saying, “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. It will not only help secure billions of dollars in debt cancellation for defrauded students, but charts a borrower defense process that is fair, just, and efficient for future borrowers.”
The proposed settlement will still require court-approval in a July 28th hearing.
More at: https://www.thefinancialtrends.com/2022/06/24/7-5-billion-in-student-loan-relief-under-education-department-settlement/
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