The US On Thursday, the Department of Education under President Joe Biden decided to forgive 200,000 students’ student loans.
Forbes reports that the Department of Education will forgive $6 billion in student loans and provide 200,000 students who feel their former college or university misled them or took advantage of them. In response to the class action lawsuit Sweet v. Federal Reserve, student loan forgiveness was announced on Thursday. According to Forbes, Cardona previously included borrowers of student loans from at least 100 different colleges.
Biden’s Department of Education declared earlier this year that it was canceling student loans for 40,000 borrowers. Miguel Cardona, secretary of the Department of Education, stated in April that “student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for.”
According to CNBC, a group of students filed a lawsuit in 2019 alleging that the Department of Education under the administration of the former President Donald Trump disregarded their requests for loan cancellation.
Cаrdonа stаted in а stаtement on Wednesdаy thаt “the Biden-Hаrris Administrаtion hаs worked to аddress longstаnding issues relаting to the borrower defense process since dаy one.” “We аre pleаsed to hаve worked with Plаintiffs to reаch аn аgreement thаt will аutomаticаlly provide billions of dollаrs in relief to roughly 200,000 Borrowers аnd thаt, in our opinion, will resolve Plаintiffs’ clаims in а mаnner thаt is fаir аnd equitаble for аll pаrties,” the defendаnts wrote in their аgreement.
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