The Department of Education has agreed to cancel the student loans of 200,000 people who brought a class action lawsuit against the government because they were stuck with federal debts from schools that were found to have misled them.
Around $6 billion in debt forgiveness will be approved by the Education Department. The 200,000 borrowers who are eligible for the relief will get a number of benefits.
Schumer says 100 million people have health-care debt.
Around 264,000 class members brought a lawsuit against the Trump administration for ignoring their applications for loan cancellation. The suit name was changed after the current U.S. Secretary of Education replaced the previous one.
"This momentous proposed settlement will deliver answers and certainty to borrowers who have fought long and hard for a fair resolution of theirborrower defense claims after being cheated by their schools and ignored or even rejected by their government."
The Project compiled a list of the dozens of schools that are involved in the settlement, and that the Education Department has determined that some of them engaged in improper conduct.
Secretary Cardona said that the Biden-Harris Administration has worked to address longstanding issues related to the borrower defense process.
We are pleased that we were able to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve the claims in a way that is fair and equitable for everyone.