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$6 billion student loan settlement gets preliminary approval

Borrowers involved in the case will have until Sept. 8 to object to the terms of the deal, which Alsup called a “grand slam, home run” for borrowers. The agreement will provide automatic relief, including refunds of money paid to the federal agency and credit repair, to some 200,000 people. If granted final approval, the settlement would resolve a class-action lawsuit filed in 2018 by people who accused the Education Department of ignoring their applications for loan cancellation through a federal program known as borrower defense to repayment. It's unclear whether Alsup’s tentative ruling on the intervention will have a material impact on the settlement. “You’ve already gotten the money and spent it,” Alsup told the schools