The US Supreme Court has allowed a class-action settlement that could lead to the cancellation of more than 200,000 student loans, worth over $6 billion.
Many conservatives had hoped the court would take up the case in order to challenge Biden’s ability to cancel student debt. However, technically this case is separate from President Joe Biden’s better-known, controversial plan to forgive student loan debt, which is also before the justices.
The settlement in question involves borrowers’ claims that their loans, which were taken out based on their schools’ misrepresentations. The argument is that the students were deceived and defrauded. Many of these schools are for-profit.