Story perspectives

Court Denies Delay, Grants $23 B Relief to 170,000 Borrowers

7/25/2026

Summary

Story summary

A U.S. federal court denied the Education Department’s request to postpone relief for borrowers in Sweet v. McMahon.
The 2022 settlement, reached under the Biden administration, provides $23 billion in relief for more than 500,000 defrauded borrowers.
The ruling triggers automatic discharge for an additional 170,000 borrowers, the Project on Predatory Student Lending says.
Borrowers who filed claims between June 23 and November 15, 2022 are covered by the decision.

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Story summary

A U.S. federal court denied the Education Department’s request to postpone relief for borrowers in Sweet v. McMahon.
The 2022 settlement, reached under the Biden administration, provides $23 billion in relief for more than 500,000 defrauded borrowers.
The ruling triggers automatic discharge for an additional 170,000 borrowers, the Project on Predatory Student Lending says.
Borrowers who filed claims between June 23 and November 15, 2022 are covered by the decision.