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Another Student Loan Forgiveness Challenge Heads To Supreme Court — Key Updates

By Grace Chen
Published in Financial Planning
April 07, 2023
1 min read
Another Student Loan Forgiveness Challenge Heads To Supreme Court — Key Updates

Student loan forgiveness has once again become a hot topic as another related case will head to the Supreme Court. What caught my attention was the fact that this case is about the legal authority of the U.S. Department of Education to provide loan forgiveness.

The case in question involves a student borrower who claims that her school misled her about the employability of its graduates and as a result, she incurred a significant amount of debt. Initially, the borrower was granted loan forgiveness, but the Education Department overturned it, citing that the borrower did not provide sufficient evidence.

The borrower filed a lawsuit and a federal appeals court ruled in her favor, stating that the Education Department had no grounds to deny the forgiveness. However, the Education Department appealed, and as a result, the case will now be heard by the Supreme Court.

This case is significant because it may set a precedent for other individuals who have been denied loan forgiveness by the Education Department. Furthermore, it highlights the ongoing debate over the responsibility of schools and the Education Department when it comes to the financial well-being of students.

In conclusion, the latest development in the student loan forgiveness debate emphasizes the need for clarity and consistency in loan forgiveness policies. Decisions made by the Supreme Court could have far-reaching implications, making it imperative that we pay attention to this important issue.


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Grace Chen

Grace Chen

Freelance Writer

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