More than 170,000 borrowers will see $11 billion in student loan balances disappear after a key federal court ruling in what has become the largest settlement against the U.S. government in the nation’s history.
The ruling stems from the 2019 Sweet vs. McMahon settlement against the government based on the borrower defense rule, a federal regulation that allows student loan borrowers to apply for loan forgiveness if they believe they were defrauded or misled about the education they paid for.
