U.S. Supreme Court allows debt cancellation for thousands of students to pay for their studies
The U.S. Supreme Court on Thursday decided to allow the cancellation of a few 6 billion dollars (€5.42 million) in student debt.
The Supreme Court declined to intervene in a case brought by three universities asking it to block a court decision that allowed forgiveness of debt for thousands of students of some 150 educational institutions in the country accused of malpractice.
Three of these institutions petitioned the Supreme Court to block a legal settlement granting cancellation of debt to thousands of lenders who claimed to have applied for the loans based on fraudulent claims by the educational institutions.
The settlement was approved by a judge in California, based on a federal law that allows student debt cancellation in specific circumstances.
The plaintiffs, however, asserted in their petition to the Supreme Court that the settlement represented a collusion between Biden’s attorneys and the debtors.according to national media reports.
The Supreme Court is due to rule in the coming months on a case also related to student debt but more far-reaching concerning President Joe Biden’s plan to forgive the debt of millions of people.
In late August of the year, Biden announced that he was going to forgive some of the debt that millions of college students owed to the federal government in order to pay for their education.
This decision was lawsuit before several courts by conservative groups in different states of the country, which have taken it all the way to the Supreme Court.
The president reported the cancellation of up to 20,000 dollars (18.8 thousand euros) of debt per student, although the measure only plans to benefit those who earn less than 125,000 dollars a year. (113,000 euros) or those who, being married, have an income of less than $250,000 (226,000 euros). per year.