The U.S. Department of Education will cancel approximately $11 billion in federal student loan debt for over 170,000 borrowers following a federal appeals court decision. The court ruled on July 17, 2026, against the Trump administration's efforts to postpone relief for students who alleged they were defrauded by their educational institutions. This decision is part of a long-standing class-action lawsuit regarding the claims of these borrowers.
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Court Ruling Allows $11 Billion in Student Loan Debt Relief for Borrowers
A federal appeals court ruling has led to the cancellation of about $11 billion in federal student loan debt for more than 170,000 borrowers. The ruling, issued on July 17, 2026, rejected attempts by the Trump administration to delay relief for students who claimed they were defrauded by their schools.
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450K student loan borrowers eligible for debt relief after court ruling
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Court Ruling Allows $11 Billion in Student Loan Debt Relief for Borrowers