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There will be no bank loans involved.
The United States Department of Housing and Urban Development determined that few of the loans involved its programs.
Bank of America said that the loans involved in the settlement have an aggregate original principal balance of about $1.4tn.
And Wells Fargo's practice of not notifying borrowers that they were being charged fees "is not peculiar to loans involved in a bankruptcy," the court said.
Leland Jones, a HUD spokesman, said last week that the other loans involved in the lawsuits were not actually insured by the FHA.
The loans involved were federal consolidation loans, which allow students to combine loans from other sources into a single payment, making repayment simpler and ideally lowering students' overall interest burden.
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BANK SUES VICK OVER LOANS An Indiana bank sued the suspended Atlanta Falcons quarterback Michael Vick for not repaying loans involving a car rental business.
Term loans involve more risk to the lender than do short-term loans.
But they denied the loans involving Morris properties were causing their difficulties.
"The loans involve a lot of complicated calculations and there are lots of hoops to jump through.
Investigators identified more than 20 loans involving Mr. Rizvi that resulted in immediate defaults over the past two years, Ms. Rice said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com