She Thought She'd Be Burdened by Student Loans Forever—Then It All Changed
Summary
A Virginia woman named Charmaine Pitt had her student loans canceled after a four-year legal fight tied to a major class-action lawsuit. The lawsuit involved thousands of borrowers who were defrauded by their colleges, and a missed government deadline led to automatic loan forgiveness.Key Facts
- Charmaine Pitt applied for student loan debt cancellation under Borrower Defense to Repayment in July 2022.
- Borrower Defense allows borrowers to cancel loans if their college misled or defrauded them.
- The class-action lawsuit, Sweet v. McMahon, was filed in 2019 against the Department of Education for delaying loan relief.
- A $6 billion settlement canceled loans for over 200,000 borrowers.
- The Department of Education missed a January 28 deadline to decide on applications, triggering automatic loan forgiveness.
- Pitt kept up with the case for years and only saw her loan balance cleared after a social media post urged her to check.
- The issue became prominent after the 2015 collapse of Corinthian Colleges, which led to many Borrower Defense claims.
- During his presidency, President Biden forgave more than $17 billion in student loans linked to Borrower Defense rules.
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