The U.S. Department of Education has agreed to cancel $6 billion of student loans for 200,000 student loan borrowers.

Here’s what you need to know.

Student Loans

The Biden administration is continuing its commitment to cancel student loans for millions of student loan borrowers. As part of a settlement agreement in a class-action lawsuitSweet v. Cardona, the Education Department will provide full student loan cancellation to approximately 200,000 student loan borrowers who were misled by their college or university. Borrowers will also get a refund of student loan payments made and deletion of any related negative marks on their credit report. It’s a major win for student loan borrowers who have been seeking student loan relief for several years. The announcement comes at a critical juncture as President Joe Biden considers wide-scale student loan forgiveness for millions of student loan borrowers. The original class-action lawsuit included 264,000 student loan borrowers who attended more than 150 colleges and universities such as the University of Phoenix and DeVry.

Student loan forgiveness: Biden has canceled $8 billion in student debt under borrower defense to repayment

Before this major announcement on student loan forgiveness, Biden canceled $25 billion of student loans. This amount included $7.9 billion of student loan cancellation for 690,000 borrowers under borrower defense to student loan repayment and school closures. Earlier this month, the Biden administration canceled $5.8 billion of student loans for 560,000 student loan borrowers. Borrower defense to repayment is an Obama-era rule that allows student loan borrowers to get student loan cancellation if their school closes or if they were misled by their college or university. Borrower defense to repayment has been featured prominently in lawsuits regarding for-profit schools.