Supreme Court Won’t Block Student Loan Class-Action Settlement

The Supreme Court has decided not to block a $1.3 billion class-action settlement for student loan borrowers, which is the largest payout of its kind in history. The class-action lawsuit was filed on behalf of thousands of students who were allegedly misled by the now-defunct ITT Technical Institute, which promised them high-paying jobs after graduation that did not materialize. This decision means that around 35,000 former students who attended ITT Tech campuses from 2006 to 2016 will receive an average of $36,000 in debt relief. Some borrowers will receive full debt relief, while others will receive a portion of their loans forgiven.

The lawsuit was filed by the Consumer Financial Protection Bureau (CFPB) after the Department of Education relaxed rules on student loan forgiveness. The CFPB claimed that ITT Tech misled students about job prospects and the transferability of credits to other schools. The for-profit college chain filed for bankruptcy in 2016 after the Department of Education banned it from enrolling new students who relied on federal financial aid.

This decision could have a significant impact on the for-profit college industry, which has been accused of predatory practices and misleading students about job prospects. It also highlights the need for more transparency and accountability in the student loan industry, where rising debt levels have become a major economic issue for younger generations.

In conclusion, the Supreme Court’s decision not to block the student loan class-action settlement is a significant step towards justice for the thousands of former ITT Tech students who were allegedly misled about their future job prospects. It also serves as a reminder that there is a pressing need for greater transparency and accountability in the student loan industry, and that students deserve to have access to truthful and accurate information about their loan repayment options.