A federal judge approved a settlement in a class action lawsuit against the U.S. Department of Education that argued the agency ignored borrower defense to repayment claims.
Under the settlement, 200,000 borrowers who attended one of 153 institutions identified by the Education Department will see all their federal student loans discharged, which totals about $6 billion for the group. Another 64,000 borrowers will receive final decisions on their borrower-defense claims. Most of the institutions listed are for-profit colleges or universities.