The U.S. Supreme Court on Thursday refused to block a class-action legal settlement that would cancel more than $6 billion in debt owned by former students of universities who claimed they were misled about job prospects.
The high court rejected an emergency request from three for-profit Lincoln Educational Services Corp., for-profit American National University Inc., and nonprofit Everglades College Inc., who are challenging a settlement between the U.S. Education Department and borrowers that linked the colleges to claims of “substantial misconduct,” which the schools dispute. No Supreme Court justices publicly dissented (pdf) in rejecting the request, and no explanation was given.
