450,000 defrauded student loan borrowers are eligible for debt forgiveness — here's who qualifies
A $23 billion settlement with the U.S. Department of Education has cleared debt for about 450,000 student‑loan borrowers who were defrauded by for‑profit schools.Summary
The Sweet v. McMahon lawsuit, filed in 2019 and renamed through three presidential administrations, culminated in a $23 billion class‑action settlement with the U.S. Department of Education that has cleared debt for roughly 450,000 borrowers who attended for‑profit schools that misled them about career prospects and credit transferability. Eligibility is limited to federal student loans and depends on the school attended and the timing of the Borrower Defense application; claims pending as of November 2022 or denied between December 2019 and October 2020 may qualify. The average debt forgiven exceeds $48,000, with many borrowers receiving refunds of over $15,000 for prior payments, and the Department must finalize forgiveness by June 15, 2027, while private loans remain unaffected.
(Source：CNBC)