The Ministry of Education cancels the debt of 200,000 student borrowers

U.S. Secretary of Education Miguel Cardona

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The US Department of Education has agreed to forgive student loans for about 200,000 people who filed a class action lawsuit against the government, saying they were stuck with federal debts from schools that misled them .

Under the Sweet v. Cardona, the Department of Education will immediately approve approximately $6 billion in debt forgiveness. The 200,000 borrowers eligible for relief will obtain full cancellation of their debt, reimbursement of amounts paid and repair of their credit.

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The plaintiffs filed their lawsuit against the Trump administration in 2019, representing about 264,000 members of the group who said their requests for loan forgiveness were being ignored by the Department of Education. The lawsuit’s name was later changed from Sweet v. DeVos to Sweet c. Cardona after current US Education Secretary Miguel Cardona replaced former Trump appointee Betsy DeVos.

“This landmark settlement proposal will provide answers and certainty to borrowers who have fought long and hard for a fair resolution of their defense claims after being misled by their schools and ignored or even dismissed by their government,” said Eileen. Connor, director of the Predatory Student Loans Project at Harvard Law School.

The project has compiled a list of dozens of schools that are implicated in the settlement and that the Department of Education has determined to have been at fault.

“From day one, the Biden-Harris administration has worked to resolve long-standing issues with the borrower defense process,” Cardona said in a statement.

“We are pleased to have worked with the plaintiffs to reach an agreement that will provide billions of dollars in automatic relief to approximately 200,000 borrowers and which we believe will resolve the plaintiffs’ claims in a fair and equitable manner for all parties.”


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