20 GOP-led states are asking the Supreme Court to halt Biden’s latest student-debt cancellation for 200,000 borrowers, backing a request from 3 schools accused of defrauding their students

Insider 

Ayelet Sheffey

April 11, 2023

• A federal judge ruled that 200,000 borrowers can move forward with relief in a borrower defense settlement.

• Last month, three schools mentioned in the settlement appealed the decision to the Supreme Court.

• 20 GOP-led states filed an amicus brief supporting the schools, arguing Biden doesn’t have authority to carry out this relief.

President Joe Biden’s broad student-loan forgiveness plan isn’t the only relief facing legal challenges.

In 2019, a group of borrowers sued the Education Department over stalled borrower defense claims, which are claims borrowers can file if they believe they were defrauded by the school they attended, and if approved, their debt from the school would be wiped out.

The case, now known as Sweet vs. Cardona, was taken up by Biden’s Education Department after it was not resolved under former President Donald Trump’s, and the department agreed to a settlement that would give 200,000 borrowers in the case $6 billion in relief. Federal Judge William Alsup signed off on the settlement in November, but in January, three of the schools named in the settlement appealed the decision, requesting the relief remain paused as the legal process plays out.

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