Student-loan borrowers are waiting for 'legally required' debt relief that Trump isn't delivering, new legal filing says
A borrower advocacy group has filed a motion to hold the Trump administration in contempt for failing to process student-loan debt relief as required by a court settlement. The Education Department claims the delays are due to necessary account reviews rather than administrative failure.
Why it matters
This highlights a significant legal and administrative conflict regarding the fulfillment of court-ordered financial relief for thousands of student borrowers.
A new legal filing said that the Trump administration is failing its obligation to process debt relief for defrauded student-loan borrowers. Kevin Dietsch/Getty Images Student-loan borrowers are still waiting for the relief they're entitled to through a settlement, a new legal filing said. A borrower advocacy group is asking a court to enforce compliance with the relief settlement. The Education Department said it disagrees with the motion and is working to enact relief. Student-loan borrowers are legally entitled to debt relief — but they're still waiting for it to arrive, a new court filing says. The Project on Predatory Student Lending — a borrower advocacy group — filed a new motion in its years-long lawsuit to get relief for thousands of defrauded borrowers . In July, a federal court denied the Trump administration's request to delay relief under the Sweet v.
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