US Supreme Court refuses to halt a legal settlement that would erase more than $6 billion in debt owed by former students of colleges who have said they were misled by schools
Latest dispute stems from a settlement under which Education Department would automatically cancel debt of nearly 200,000 borrowers who attended 151 schools.
Three of the schools identified in the settlement — for-profit Lincoln Educational Services Corp and American National University Inc as well as nonprofit Everglades College Inc — challenged the agreement after it was approved by a federal judge in California last November. "Today's swift and decisive action from the highest court should end, once and for all, any ongoing debate about the legitimacy of this settlement. The message is clear: the rights of student borrowers will not falter, even in the face of well-funded, overblown political attacks masquerading as a legal argument," Connor told Reuters news agency.
California-based US District Judge William Alsup approved the settlement last year and in February rejected the objections raised by the three colleges.
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