Are You Affected By This Billion-Dollar Student Loan Settlement? Supreme Court Rules It Can Proceed

On Thursday, the Supreme Court declined to block a multi-billion dollar settlement that would cancel the debt of borrowers who claim they took out loans based on misrepresentations by their schools, NBC News reports.

Two for-profit colleges- Everglades College and Lincoln Educational Services- and American National University, a not-for-profit school, attempted to block a settlement that could be worth over $6 billion based on the case Sweet v. Cardona.

The class action settlement represents over 200,000 federal student loan borrowers who said they took out loans after being promised earning and employment outcomes that schools couldn’t deliver, Forbes reported.

Over 150 colleges and universities are impacted by the class action lawsuit, but students of the three aforementioned schools have had their cancelation delayed as the schools have attempted to appeal the decision.

The schools were all linked to claims of “substantial misconduct” in the lawsuit, which was filed in 2019.

To determine if you are eligible for cancelation, borrowers can visit the website for The Project on Predatory Student Lending, the legal team representing borrowers in the class action lawsuit.