SCOTUS Allows $6 Billion in Student Loan Cancellations


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 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.

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