Judge rules to erase the student loans of 200K borrowers who say they were ripped off

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Borrowers who say they were misled by their colleges have waited years for the federal government to review their claims. Wednesday's decision was a big win for them, but it's already been appealed.

, that allows federal student loan borrowers to ask the department to erase their debts if a school has lied to them – about their job prospects, their credits' transferability or their likely salary after graduation.

In an earlier legal memo protesting the settlement, attorneys for Everglades College, Inc., whose schools are listed among the 153, called it a"farce" and complained that,"in most instances, all the Department has before it are unproven and yet-to-be-adjudicated allegations, but the agency is nonetheless deeming schools guilty without further process or explanation."

 

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