Supreme Court not stopping $6 billion student loan settlement

The Supreme Court is not blocking a roughly $6 billion legal settlement that is expected to cancel student loans for hundreds of thousands of borrowers who said schools misled them.

The justices on Thursday denied an emergency plea from Everglades College, Lincoln Educational Services Corp. and American National University. The schools argued they were unfairly placed on a list of more than 150 mostly for-profit institutions associated with alleged misconduct. Everglades is a not-for-profit institution, while Lincoln and American are for-profit, according to The Associated Press.

San Francisco-based U.S. District Judge William Alsup approved the class-action settlement last year in response to complaints that the schools made false claims and left graduates unable to find work.

The justices are still expected by late June to release a decision in a separate case about whether the Biden administration can wipe out $400 billion in student loans for more than 40 million people.