SCOTUS Allows $6 Billion in Student Loan Cancellations

6
228

The Supreme Court did not block a settlement allowing the cancellation of thousands of student loan debts. Therefore, their lack of action allows it to take effect.

Rejecting an emergency request from three college operators, the high court left the accord in force while the justices decided whether to take up an appeal challenging the agreement. No justices publicly dissented.

The colleges are challenging the Education Department’s authority to cancel many loans in a single agreement.

The settlement went beyond the thrust of the lawsuit, with the Education Department agreeing to discharge loans for hundreds of thousands of borrowers who attended 151 schools.

For-profit Lincoln Educational Services Corp. and American National University Inc., and nonprofit Everglades College Inc. contend the government exceeded their authority.

THE SUPREME COURT REJECTED THE CHALLENGE

The Supreme Court rejected the challenge against the settlement made by colleges.

This case is unrelated to Biden’s plan to forgive student loan debt, which was before the Supreme Court. However, it is very similar.

This lawsuit is based on borrowers alleging the loans were based on a misrepresentation made by the schools they attended.

US Solicitor General Elizabeth Prelogar said the accord itself doesn’t affect the rights of the schools or impose any liability on them.

The settlement, which U.S. District Judge William Alsup approved in November, could be worth more than $6 billion. The government has already begun implementing the settlement.

The Biden administration urged the courts to let the settlement stay in place.

When they say “government,” they mean the US taxpayers. Why are taxpayers responsible for college misrepresentation and student failure to check it out before they take out loans? They don’t have to pay their loans; the only people who have to pay, indirectly, are the innocent taxpayers.


You can comment on the article after the ads and subscribe to the Daily Newsletter here if you would like a quick view of the articles of the day and any late news:

PowerInbox
5 1 vote
Article Rating
6 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
GuvGeek
GuvGeek
2 years ago

The Congress needs to stop loan forgiveness and force colleges to back Student Loans.

IronHandAstarte
IronHandAstarte
2 years ago

What’s next cancel mortgages, OH I forgot the Elites want the Real Estate.
I am confused who forced them to take a load and go to school for underwater basket weaving.
Did we hit 100 trillion in debt yet?
ROTFLMAO

IronHandAstarte
IronHandAstarte
2 years ago

LOAN, WELL MAYBE LOAD WORKS TOO.

Frank S.
Frank S.
2 years ago

This should be great news for every family that has seen their kids stuck in all our failed “government schools”. The parents were obviously the victims of fraud. Time to collect the dough.

Peter B. Prange
Peter B. Prange
2 years ago

Some days bring a ray of hope 🙂

Last edited 2 years ago by Peter B. Prange
Peter B. Prange
Peter B. Prange
2 years ago

At least they did not let the whole mess stand…