Court Asked to Enforce $6 Billion Loan Forgiveness Settlement

Nearly 200,000 borrowers affected by delay in debt cancellation, prompting legal action against the Education Department.

A federal court is asked to enforce a $6 billion student loan forgiveness settlement after the Biden administration missed a court-ordered deadline, affecting nearly 200,000 borrowers.
Tens of thousands of borrowers are still awaiting debt cancellation, with some having filed for relief as early as 2015.
The Department of Education admits to issues with loan servicing delays and complex loan records, leading to the delay in implementing the settlement.
Legal battles and political pressures challenge the administration's efforts to forgive student loans, highlighting the difficulties in providing relief.
Judges have ordered student loan servicers to show cause for not discharging loans in accordance with the settlement, indicating potential legal repercussions for non-compliance.