Student Loans Wiped Out for 450K Borrowers After Appeals Court Ruling
The settlement has already delivered $12 billion in relief to nearly 300,000 borrowers, and more discharges will follow after the appeals court ruling.
- In late July, the U.S. Court of Appeals for the Ninth Circuit denied the Trump administration's request to delay borrower-defense claims, enabling nearly 200,000 student loan borrowers to receive relief.
- Filed seven years ago by the Project on Predatory Student Lending , the class-action suit challenged the U.S. Education Department for wrongfully delaying and denying borrower-defense claims across three presidential administrations.
- Eileen Connor, executive director of the PPSL, said the settlement impacts over 450,000 people and has improved their personal balance sheets by over $23 billion, with average loan balances cleared exceeding $48,000.
- Borrower Jessica Feindt recently saw her debts erased, saying, "I feel like I should be happy," though she remains angry about years of financial hardship. The Education Department must complete all eligible discharges by June 15, 2027.
- The settlement represents the largest against the U.S. government, likely concluding a legal battle spanning three presidential administrations. Connor noted that borrower-defense relief is "not something one can newly qualify for today.
22 Articles
22 Articles
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Student loans wiped out for 450K borrowers after appeals court ruling
An appeals court rejected the Trump administration's bid to delay relief, clearing the way for eligible borrowers to receive loan discharges by June 2027.
Relief On The Way For Student Loan Borrowers In US Through Historic $23B Settlement
Student loan borrowers will benefit from what is now the largest class-action settlement in U.S. history. According to information shared by Federal Student Aid, seven student loan borrowers filed a lawsuit in United States District Court for the Northern District of California regarding how the Department of Education handled borrower defense applications. As AFROTECH previously reported, the lawsuit referenced years of delays by the Department…
450,000 defrauded student loan borrowers are eligible for debt forgiveness — here's who qualifies
Hundreds of thousands of student loan borrowers are eligible for debt cancellation under a $23 billion class-action settlement against the federal government.
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