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US Forgives $6 Billion in Student Loan Debt for Borrowers Who Attended For-Profit Colleges

The Department of Education agreed to grant relief to about 200,000 borrowers as part of a legal settlement

Miguel Cardona, U.S. secretary of education.

Miguel Cardona, U.S. secretary of education.

Photographer: Sarah Silbiger/UPI/Bloomberg

The US Department of Education agreed to erase nearly $6 billion in student loans for borrowers who filed a class action lawsuit against the government after attending for-profit colleges that were found to have misled students. 

About 200,000 borrowers will be immediately eligible for relief under the Sweet v. Cardona settlement, which includes full cancellation of their debt, refunds for the money they paid towards their loans and adjustments to their credit reports.