This is NOT the Big case against Biden’s loan forgivness….
It does ok a settlement of a class action suit that had the Biden Education cancel student loan debt from for-profit schools or vocational programs that the Education Dept. found ran operations not on the level….
(Trump was involved in the mass loan relief denial also)
This strikes me as something that might preveiw the courts ruling on B iden’s student loan forgiveness move….
The court , with NO dissent went with Biden’s Education Department on this forgivness of Billions in student loan debt ALREADY….
There was the misconduct part (Colleges AND Trump admin Ed. Dept under Betsey DeVoss) as the trigger….
Will the justices approve the Education Dept.’s right to do something against the pushback against Biden’s actions in the bigger case which has some oppenents just complaining about just making money from fee’s /taxes?
Hmmmmm?
The Supreme Court on Thursday refused to block a class-action settlement that forgave $6 billion in federal loans for students at for-profit schools or vocational programs.
The court’s brief order gave no reasons, which is typical when the justices act on emergency applications. There were no noted dissents.
The case is not related to the Biden administration’s pandemic-related debt relief program, which involves $400 billion in student loans owed by 40 million Americans. The justices heard argumentsin challenges to that program in February and are expected to rule by June.
The new case arose from accusations of fraud against 151 institutions, nearly all of them for-profit schools or vocational programs. A federal law allows the education secretary to cancel federal loans based on misconduct by the borrower’s school….
…
The settlement was prompted in part by an enormous backlog in the government’s processing of applications for relief under the law after the 2015 collapse of Corinthian Colleges after the emergence of extensive evidence of illegal recruiting tactics. (Last year, in a separate development, the Education Department announced that it would wipe out $5.8 billion owed by 560,000 borrowers who attended Corinthian Colleges.)
The class action at issue in the new case was filed in 2019, seeking to require the government to reduce the backlog. An initial settlement collapsed after the Trump administration issued 128,000 form-letter denial notices that a federal judge called “disturbingly Kafkaesque.”
The case was settled for a second time in June 2022, granting automatic debt forgiveness to almost 200,000 borrowers who had attended the 151 schools and streamlined procedures for about 100,000 others. Still other borrowers who were not part of the initial class would have their applications considered in the usual way, but with a three-year deadline.
As of April 11, the government told the Supreme Court, 78,000 borrowers in the first group had received discharges.
Three schools — Everglades College, Lincoln Educational Services Corporation and American National University — challenged the settlement, saying it was a moving target and the product of collusion between the Biden administration and lawyers for the borrowers….
Note….
Plain and simple?
It appears that the American student Loan program IS fucked UP…..
The Federal loans have generated YUGE debt and misconduct by several education school’s and debt collection outfits….
Biden seems to be trying to get Americans caught in the system out from it’s abuses…..
Will the High Court contiune to let Biden work to elevate the debt abuse problems?