Supreme Court Allows Cancellation of 6 billion in Student Debt
The Supreme court decided that would allow the cancellation of about $6 billion in student debt.
The court declined to intervene in a case in which three universities were asked to block a court decision to forgive debt to thousands of students at 150 universities in the country that had been accused of wrongdoing.
Three of the institutions asked the Supreme Court to legally block debt forgiveness for thousands of lenders who had sought loans based on apparent fraudulent claims.
A judge in California approved the settlement based on federal law that allowed student debt cancellation in specific circumstances.
However, according to some media reports, plaintiffs claimed that the settlement was a conspiracy between government lawyers and debtors.
The Supreme Court will have to decide within a few months on President Joe Biden’s plan to forgive student debt to millions of people.
In August 2022, Biden announced that he planned to forgive part of the debt of millions of college students who had contracted with the federal administration for their studies.
The decision was criticized in several courts by groups that took the case to the highest court in the country.
Biden announced that cancellation would allow the cancellation of up to 20,000 dollars in student debt per person; however, it is expected that only those who earn less than 125,000 dollars a year, or those who, even if married, have an income of less than 250,000 dollars, would benefit from the cancellation.
