All of the students’ loans will remain in forbearance with zero interest until they get settlement relief or a denial of cancellation that they are allowed to appeal.
By Gillian Brassil, McClatchy Washington Bureau
If approved, the settlement will cancel $6 billion in federal loans for roughly 200,000 people who attended schools that were deemed to have defrauded students or otherwise flouted certain state laws.will get a timely review of their situations to see whether they can have their loans wiped too. “We are pleased to have worked with plaintiffs to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve plaintiffs’ claims in a manner that is fair and equitable for all parties,” Education Secretary Miguel CardonaStudents who can show their schools misled them or otherwise engaged in misconduct or violated certain state laws may be eligible for what is called a borrower defense loan repayment.
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