Colleges Fail to Stop Government’s Student Loan Deal (Correct)

Three colleges can’t revive a class action deal between the US Department of Education and student borrowers, settling a claim that the government improperly processed their applications for relief from their student-loan debt, the Ninth Circuit said Tuesday.

The US Supreme Court upheld the settlement that would cancel $6 billion in debt for students who say they were misled about job prospects by a group of mostly for-profit colleges, but the schools now sought to challenge it. The schools lacked prudential standing because they didn’t “identify any provision in the settlement agreement or settlement approval order that formally strips them ...