NEW: Supreme Court allows a $6 billion student debt settlement that could lead to the cancellation of 200,000 loans.
, which is also before the justices, with a ruling due in the next two months.
The application at the Supreme Court was filed by Everglades College, Lincoln Educational Services Corp. and American National University. Lincoln and American National are for-profit enterprises, while Everglades is not-for-profit. All three operate colleges the federal government placed on a list of more than 150 institutions that it said are linked with claims of “substantial misconduct.”
“The secretary’s claimed authority amounts to nothing less than the power to cancel, en masse, every student loan in the country,” the challengers said in court papers.
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