Student Loan Forgiveness Case Resumes At Supreme Court—What To Know
The post Student Loan Forgiveness Case Resumes At Supreme Court—What To Know appeared on BitcoinEthereumNews.com. Topline The Supreme Court said Monday that a case over a Biden-era student loan forgiveness rule will resume—after the Trump administration briefly put the litigation on hold—which could affect thousands of borrowers who want to have their loans discharged after their schools closed or defrauded them. The Guardian or Authority of Law, created by sculptor James Earle Fraser, rests on the side of the … More Supreme Court on Sept. 28, 2020 in Washington. (Photo by Al Drago/Getty Images) Getty Images Key Facts The Supreme Court agreed Monday to resume Department of Education v. Career Colleges and Schools of Texas, a dispute over a 2022 rule that streamlines the process for borrowers to have their federal loans discharged if their schools closed or engaged in misconduct. While borrowers have always been able to try to get out of defaulting on their loans by alleging misconduct by their school, the 2022 rule—created after a huge influx of complaints led to a significant backlog—defined clear grounds for borrowers to be able to have their loans discharged before they default on them, making the process of challenging them much easier. Under the rule, known as “Borrower Defense Loan Discharge,” borrowers can challenge their loans if their school commits misconduct through misrepresentation, substantial omission of fact, breach of contract or aggressive or deceptive recruitment, if if there’s a court ruling that the school violated the law, or the Department of Education takes away the school’s ability to participate in federal student loan programs based on any misconduct. The rule also allows loans to be discharged if a borrower’s school closed while they were enrolled or if they withdrew from the school less than 180 days before it closed, and makes it easier for groups to collectively seek relief from student loans, such as on…
The post Student Loan Forgiveness Case Resumes At Supreme Court—What To Know appeared on BitcoinEthereumNews.com.
Topline The Supreme Court said Monday that a case over a Biden-era student loan forgiveness rule will resume—after the Trump administration briefly put the litigation on hold—which could affect thousands of borrowers who want to have their loans discharged after their schools closed or defrauded them. The Guardian or Authority of Law, created by sculptor James Earle Fraser, rests on the side of the … More Supreme Court on Sept. 28, 2020 in Washington. (Photo by Al Drago/Getty Images) Getty Images Key Facts The Supreme Court agreed Monday to resume Department of Education v. Career Colleges and Schools of Texas, a dispute over a 2022 rule that streamlines the process for borrowers to have their federal loans discharged if their schools closed or engaged in misconduct. While borrowers have always been able to try to get out of defaulting on their loans by alleging misconduct by their school, the 2022 rule—created after a huge influx of complaints led to a significant backlog—defined clear grounds for borrowers to be able to have their loans discharged before they default on them, making the process of challenging them much easier. Under the rule, known as “Borrower Defense Loan Discharge,” borrowers can challenge their loans if their school commits misconduct through misrepresentation, substantial omission of fact, breach of contract or aggressive or deceptive recruitment, if if there’s a court ruling that the school violated the law, or the Department of Education takes away the school’s ability to participate in federal student loan programs based on any misconduct. The rule also allows loans to be discharged if a borrower’s school closed while they were enrolled or if they withdrew from the school less than 180 days before it closed, and makes it easier for groups to collectively seek relief from student loans, such as on…
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