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Three Colleges Appeal to Block $6 Billion Approved Student Loan Settlement

Students on Student Loan Settlement [Photo: Marketplace.org]
Students on Student Loan Settlement [Photo: Marketplace.org]

Three colleges have appealed to block the approved student loan settlement worth $6 billion. If implemented, this settlement would cancel the debts of more than 200,000 student borrowers.

American National University, One of the Schools That Appealed

American National University, One of the Schools That Appealed

Three colleges have appealed to block the student loan settlement for more than 200,000 borrowers. The colleges concerned were American National University, Everglades College Incorporation, and Lincoln Educational Services Corporation. The settlement is intended to cancel more than $6 billion in student loans. The appeal to block the student loan settlement was announced in June last year. However, in November of the same year, it was approved by the Education Department, as reported by Lee.

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Disagreements on the Appeal

According to Minsky, the appeal made by the schools is another hardship for students who are burdened with student loans. Supporters of the student loan settlement describe the appeal as predatory lending practices of the schools. Eileen Connor, the director of the Project on Predatory Student Lending, stated that the appeal shows how extreme the schools are in denying justice for the borrowers. Nevertheless, Connor says that the court’s approval of the settlement is absolute. Connor is also positive that the Ninth Circuit will concur that the appeal to block the settlement is baseless.

The student loan settlement involves over 100 schools and resolved a lawsuit. The lawsuit was filed by Theresa Sweet against the U.S. Secretary of Education under the Trump administration, Betsy DeVos. As stated in the lawsuit, DeVos denied the borrowers of defense applications. The complainants were represented by the Project on Predatory Student Lending (PPSL) and the Housing & Economic Rights Advocates (HERA).

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