Evelyn Hockstein/Reuters.
- A federal judge ruled that 200,000 borrowers can move forward with relief in a borrower defense settlement.
- Last month, three schools mentioned in the settlement appealed the decision to the Supreme Court.
- 20 GOP-led states filed an amicus brief supporting the schools, arguing Biden doesn't have authority to carry out this relief.
President Joe Biden's broad student-loan forgiveness plan isn't the only relief facing legal challenges.
In 2019, a group of borrowers sued the Education Department over stalled borrower defense claims, which are claims borrowers can file if they believe they were defrauded by the school they attended, and if approved, their debt from the school would be wiped out.