Borrower Defense Student Loan Class Action Settlement
U.S. Department of Education · Federal student loans and the Borrower Defense to Repayment program · Settlement Reached
About this case
Borrowers alleged that the U.S. Department of Education left borrower-defense applications unresolved for years while the underlying schools allegedly made misleading claims about graduation outcomes, job placement, and future earnings. A 2022 class-action settlement requires relief for qualifying claims, and a federal appeals court affirmed an order rejecting the department’s request to delay review, allowing additional loan discharges to proceed; the settlement has been reached and is being implemented.
Case overview
- Defendant company
- U.S. Department of Education
- Product or service
- Federal student loans and the Borrower Defense to Repayment program
- Case status
- Settlement Reached
- Lawsuit type
- Consumer
- Reported harm
- Misrepresentation
Participation information
Automatic settlement relief
The settlement provides for relief for qualifying borrower-defense claims filed before June 22, 2022, and for certain claims on which the department did not act by the applicable deadline.
No action is required under the settlement for borrowers covered by its automatic-relief provisions.
- Type
- Other
- Status
- No action required
- Total settlement amount
- $23,000,000,000
- Payout
- Loan discharges and related relief under the class-action settlement.
- Reported proof requirement
- Unclear