By the Associated Press. 

The Biden administration has agreed to cancel $6 billion in student loans for about 200,000 former students who say they were defrauded by their colleges.

The action is part of a proposed settlement in a lawsuit filed against the Trump administration in 2019. The deal would automatically erase federal student debt for students who enrolled at one of more than 150 colleges and later applied for federal debt cancellation because of alleged misconduct by the schools.

Almost all of the schools involved are for-profit colleges. Education Secretary Miguel Cardona says the settlement would resolve the claims “in a manner that is fair and equitable for all parties.”