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In the Everglades legal memo protesting the settlement, the organization says it didn't know students had filed claims against its schools. The institutions had argued the settlement scarred their reputation and equated to federal overreach. Borrowers who believe theyre eligible for this can apply for borrower loan defense discharge. We are pleased to have worked with plaintiffs to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve plaintiffs claims in a manner that is fair and equitable for all parties, said Education Secretary Miguel Cardona in a statement in June when the settlement proposal was first announced. (Shawn Thew/Pool via AP), Do You Aspire To Be Poor? student loan Most have never been the subject of enforcement by the department, or lost access to federal student loans. And that dispute was just resolved in favor of borrowers. Im still receiving emails about loan repayment from nelnet student loan. Unrelated to the case, the Biden administration finally processed and approved Davis' borrower defense claim earlier this year. More than 150 schools were accused of fraudulent activity in a $6 billion settlement. It immediately delivers certainty and relief to borrowers who have been waiting years for a fair resolution of their borrower defense claims. "We see that as a problem," Altmire says, because it's causing schools "reputational damage.". Click here for the list of schools eligible for automatic loan discharge and the decision timetable. The project compiled a list of the dozens of schools that are involved in the settlement and that the Education Department has determined engaged in misconduct. Luke Herrine, a law professor at the University of Alabama who hasadvocated for defrauded borrowers, believes its the best path forward. Think of it this way, Zibel says: The Department of Education is standing at the edge of a hole, helping defrauded borrowers climb out by canceling their student debts. They also claimed the public was not given enough time to weigh in on the matter. Last week, a federal court granted preliminary approval for a landmark settlement agreement between President Bidens Education Department and a class of student loan borrowers. 1:18-cv-00075, in the U.S. District Court for the Northern District of New York. The class members must have submitted Borrower Defense applications to the Education Department before June 22, 2022, and also must have attended one of the several dozen schools listed in an exhibit appended to the settlement agreement. University of Phoenix did not respond to multiple NPR requests for comment. However, implementation is expected to be on a rolling basis over a one-year period. Advertise The department's findings come on top of allegations made in a federal class action lawsuit filed against FCC three years ago. If the school named in the BDR claim is NOT on the list below, individuals will be entitled to a decision using a streamlined review process, more favorable to borrowers. A Division of NBCUniversal. Thats because recently, the Supreme Court declined to block a class action lawsuit against predatory for-profit colleges and vocational schools.