WASHINGTON — A group of federal student loan borrowers agreed on Wednesday night to settle a class-action lawsuit they filed against the United States Education Department.
If approved, the settlement will cancel $6 billion in federal loans for roughly 200,000 people who attended schools that were deemed to have defrauded students or otherwise flouted certain state laws.
An additional approximately 64,000 borrowers who did not attend one of the 153 named schools will get a timely review of their situations to see whether they can have their loans wiped too.
