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Court Cuts $11 B Debt for 170,000 Borrowers

8/8/2026

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Story summary
  • A federal court erased $11 billion in loans for over 170,000 borrowers in the Sweet vs. McMahon settlement, covering applications filed between June 23 2022 and November 15 2022.
  • Eileen Connor, president of the Project on Predatory Student Lending, called the decision a “huge accomplishment” for borrowers.
  • The Sweet vs. McMahon case, the largest settlement against the U.S. government, led President Joe Biden to announce a $20,000 one-time forgiveness plan per borrower in 2024.