Federal Student Loan Debt Erased for 450,000 Borrowers

Why it matters locally: While the exact number of Tennesseans benefiting is not yet public, this federal action could significantly impact individuals across the state who attended institutions accused of fraudulent practices, potentially freeing up household income.

WASHINGTON – Federal student loan debt for approximately 450,000 borrowers will be erased, resolving a long-standing class-action lawsuit. These borrowers contended their colleges engaged in fraudulent practices. The court action impacts an estimated $6 billion in federal student loan debt, according to recent figures. The class-action lawsuit has proceeded through federal courts for several years, spanning multiple presidential administrations. Originally filed as *Sweet v. DeVos* in 2019, the case later became *Sweet v. Cardona* during the Biden administration. It is currently known as *Sweet v. McMahon*, referencing the current Secretary of Education. This resolution addresses claims brought by borrowers who stated their educational institutions defrauded them, leading to significant federal student loan obligations.