The Department of Education agreed to grant relief to about 200,000 borrowers.
It's the latest move by the Biden administration to address the student loan crisis by eliminating some of the debt.
U.S. The move will enable about 200,000 borrowers to be eligible for immediate relief under the Sweet vs. Cardona agreement.
The Cardona agreement includes the cancellation of their loan in full, the refund of the money they paid for their loans, and adjustments to their credit report.
Those who applied for Student Loan Debt relief, some as long as seven years ago, will have their loans wiped out.
Student Loan Debt Relief requires attending one of more than 150 schools designated in a class-action settlement.
Under the terms of sweet settlement, about two lakh students who have joined the listed colleges will get automatic relief.
The government will review the borrower defense applications of the remaining 64,000 students on a rolling deadline.
If the Education Department fails to take the decision by the stipulated time frame, the borrower will automatically get relief.
US Education Secretary Miguel Cardona called the deal “fair and equitable for all parties.”