April 14, 2023
Supreme Court Refuses to Block $6 Billion Student Loan Settlement
The Supreme Court on Thursday refused a request by a group of colleges to block a $6 billion settlement that will cancel the student loans of about 200,000 borrowers who say they were defrauded by their schools.
The court denied the application for an emergency stay of the settlement without comment or dissent.
The case is unrelated to President Biden’s broader effort to forgive up to $20,000 in student debt for tens of millions of borrowers, which the justices are set to rule on in the coming months. But opponents of that sweeping policy had hoped a successful challenge to the $6 billion settlement could undermine an alternate route for Biden to cancel other debt if the court shuts down the relief plan.
The court denied the application for an emergency stay of the settlement without comment or dissent.
The case is unrelated to President Biden’s broader effort to forgive up to $20,000 in student debt for tens of millions of borrowers, which the justices are set to rule on in the coming months. But opponents of that sweeping policy had hoped a successful challenge to the $6 billion settlement could undermine an alternate route for Biden to cancel other debt if the court shuts down the relief plan.