Key facts
- The U.S. Department of Education will cancel student loan debt for over 170,000 borrowers.
- The borrowers were defrauded by for-profit schools.
- Two recent court victories led to the debt cancellation.
- The court rulings compel the department to honor settlement deadlines for borrower defense claims.
- The debt relief targets individuals misled by their educational institutions.
The U.S. Department of Education is set to cancel student loan debt for more than 170,000 borrowers who were victims of fraud by for-profit schools. This significant move comes after two recent court victories that have compelled the department to act on these claims. The rulings specifically require the Department of Education to adhere to settlement deadlines for borrower defense claims, a process designed to assist students who were misled by their educational institutions. These borrowers will now have their federal student loan debt discharged as a result of the department's compliance with the court orders. The department is in the process of implementing these decisions, which will provide substantial financial relief to a large group of defrauded students.