Credit: Unsplash

Over 200,000 people will have their debt cancelled after a court ruling.

Back in 2019, approximately 264,000 current and former university students filed a lawsuit against the then-Trump administration. The plaintiffs claimed that all of them had filed for student loan cancellation programs operated by the US Department of Education, and all of them were ignored. This week, the lawsuit reached the ideal conclusion for the plaintiffs.

The Education Department has agreed to cancel the student loans for all of the students included in the lawsuit, acknowledging that the schools that handled the loans had mislead the students. Adding all of the debts together, this constitutes a total cancellation of roughly $6 billion.

“This momentous proposed settlement will deliver answers and certainty to borrowers who have fought long and hard for a fair resolution of their borrower defense claims after being cheated by their schools and ignored or even rejected by their government,” Eileen Connor, director of the Project on Predatory Student Lending at Harvard Law School, said in a statement.

The Project on Predatory Student Lending has been compiling lists of schools engaged in predatory loaning processes, and with the Education Department’s help, will cancel all of the debts they have been tracking.

“Since day one, the Biden-Harris Administration has worked to address longstanding issues relating to the borrower defense process,” US Secretary of Education Miguel Cardona said in a statement.

“We are pleased to have worked with plaintiffs to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve plaintiffs’ claims in a manner that is fair and equitable for all parties.”