Federal data shows many borrowers who aren't paying their loans went to private, for-profit colleges — schools that often market to low-income students and rely on federal financial aid for revenue.
The borrowers say they were defrauded by their colleges, but the class-action lawsuit to erase their federal student loans has been tangled up in courts for years.
The idea that there's a connection between federal student loans and what colleges charge dates back almost four decades. But it's unclear that link can lead to lower costs.
New York, Arizona, North Carolina, Kentucky and Nevada are among the states challenging a rule that limits federal student loans for graduate degrees in nursing, physical therapy and more.
In her first appearance on Capitol Hill this year, lawmakers questioned Education Secretary Linda McMahon about students' civil rights and cuts to federal education spending.
Without this Education Department oversight, borrowers could "be placed in the wrong loan repayment status, billed for incorrect amounts" and more, the U.S. Government Accountability Office says.
Legal challenges put SAVE borrowers in limbo for months, a time during which they were not required to make payments on their loans. That would change if the proposed settlement is approved.
A new lawsuit argues the latest changes to Public Service Loan Forgiveness could exclude public servants whose organizations have resisted President Trump's policies.
