Tens of thousands of student loan borrowers embroiled in a lawsuit against the Department of Education got some great news last week.
Some 30,000 borrowers received emails notifying them that their loans had been canceled ahead of a key June 15 deadline in the lawsuit, according to an X post Friday from The Project on Predatory Student Lending, a legal advocate for borrowers defrauded by predatory colleges.
The canceled loans totaled $12 billion, the project toldThe Independent in an email, citing data from the Department of Justice.
The cancellations - known as “discharges” - are part of a class-action lawsuit against Education Secretary Linda McMahon, brought by nearly 500,000 borrowers.
Discharges have taken place in three phases, the project said. Around 450,000 discharge applications have been approved since notices were first sent out in 2023, including the latest round of 30,000 approvals.
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Around 450,000 student loan discharge applications have been approved since notices were first sent out in 2023, including the latest round of 30,000 approvals (Getty Images)
The latest round of discharge notices are part of phase three, which includes around 208,000 borrowers. Some 150,000 people have received discharge notices, leaving around 48,000 borrowers awaiting a decision. The recent 30,000 discharges are part of the lawsuit’s third phase.
Courts had ruled in favor of the borrowers in 2022, and the education department has filed multiple legal requests to delay settlement but failed.
The legal group, which has assisted plaintiffs in the case titled Sweet v. McMahon, received gushing praise from some of those it had helped.
“Can confirm,” user @un4tunatelyfly posted on X Friday. “Thank you for the effort you all have put in to this. It’s an amazing feeling when that email hits!”
The Independent has asked the Department of Education for comment.
Participants in the lawsuit had filed complaints wit