Supreme Court Approves $6B Student Loan Settlement

Although it’s yet to have made a decision on President Joe Biden’s $400 billion student loan relief plan, the Supreme Court on Thursday voted to approve a $6 billion settlement for students who claim to have been misled by their schools.

The payout settles a class action lawsuit filed by thousands of student loan borrowers who claim they were unable to find jobs – a task their schools claimed would be easy once they had degrees. More than 150 colleges and universities were named in the suit. For many students, the settlement will wipe out their student debt, according to the Justice Department.

Even more college graduates could find themselves debt-free by the end of June, when the Supreme Court is expected to decide whether to allow Biden’s student loan forgiveness plan to go forward.

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