Biden administration agrees to cancel $6 billion in student loans over fraud claims

The Biden administration has settled with more than 200,000 students who it said were duped, mostly by for-profit colleges, to pave the way for the immediate cancellation of nearly $6 billion in student loans.

The proposed settlement, which would have to be approved by a federal judge, was agreed upon by a group of borrowers who sued the Education Department in 2019 during the Trump administration, because they believed their fraudulent activities were taking place. The claims were being ignored by the department. Department under Secretary miguel cardonahas made it a priority to resolve the long-pending backlog of borrower defense claims and has agreed to discharge late Wednesday.