Private Colleges Lose Appeal to Overturn $6 Billion Student Debt Settlement

A judge said they should have addressed alleged reputational harm in a separate lawsuit, not by challenging the agreement affecting more than 230,000 borrowers.

The U.S. Department of Education in Washington on June 10, 2024. Madalina Vasiliu/The Epoch Times

A coalition of private colleges have lost their bid to overturn a legal settlement that cancels $6 billion in student debt for more than 230,000 borrowers.

In a decision issued Tuesday, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit ruled that the colleges didn’t have standing to challenge the settlement that was approved in November 2022.