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Education Department Delays Loan Forgiveness Decision Until 2027

1/31/2026

Summary

Story summary

The U.S. Department of Education missed a January 28 deadline to decide on Borrower Defense applications, potentially enabling automatic loan forgiveness.
The delay follows a 2022 settlement in Sweet v. Cardona that accused the department of improperly denying applications.
The department has requested an extension until July 2027 to process applications, and it remains unclear whether borrowers will receive automatic forgiveness pending a court ruling on the extension.

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Story summary

The U.S. Department of Education missed a January 28 deadline to decide on Borrower Defense applications, potentially enabling automatic loan forgiveness.
The delay follows a 2022 settlement in Sweet v. Cardona that accused the department of improperly denying applications.
The department has requested an extension until July 2027 to process applications, and it remains unclear whether borrowers will receive automatic forgiveness pending a court ruling on the extension.