On Thursday, the nation's highest court ruled that $6 billion in student debt relief for 200,000 borrowers — a result of a settlement from a years-long lawsuit now known as Sweet vs. Cardona. The lawsuit was first filed in 2019 under former President Donald Trump on behalf of borrowers with stalled borrower defense claims, or claims borrowers can file if they believe they were defrauded by the school they attended. If approved, their debt would be wiped out.
President Joe Biden's Education Department agreed to a settlement last summer, and a federal judge signed off on the relief in November. However, shortly after, three schools named in the settlement appealed the decision and requested a lower court pause the relief as the legal process plays out. The Ninth Circuit Court of Appeals rejected the request, and now, the Supreme Court came to the same conclusion.
"The application for stay presented to Justice Kagan and by her referred to the Court is denied," the Supreme Court wrote in its very brief decision. It offered no explanation for its decision.
