450K Student Loan Borrowers Eligible for Debt Relief After Court Ruling
The ruling expands automatic debt cancellation after judges said the Education Department missed deadlines for reviewing borrower-defense claims.
- A federal appeals court panel rejected the Department of Education's attempt to delay decision deadlines, expanding the class-action settlement to nearly 500,000 borrowers with $23 billion in total debt relief.
- Under President Joe Biden, the 2022 Sweet v. McMahon settlement required the government to resolve borrower defense claims by specific deadlines, but the Department of Education has repeatedly filed motions attempting to delay these obligations.
- Circuit judges found the Department of Education knew Post-Class applicants—those who applied between June 23 and November 15, 2022—totaled over 205,000 people as early as February 2023.
- This decision triggered automatic relief for more than 170,000 additional borrowers, bringing the total Sweet v. McMahon settlement amount to $23 billion, with $11 billion in debt erased.
- Post-Class applicants will receive full settlement relief by June 15, 2027; borrowers who did not apply by November 15, 2022, can visit StudentAid.gov to determine eligibility, though the government faces a large backlog of pending claims.
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More than 170,000 borrowers will receive the cancellation of their student loans after a court decision. We tell you who qualify
Education Department ordered to forgive student loans for over 170K borrowers defrauded by schools
The latest ruling, issued unanimously by a panel on the Ninth Circuit Court of Appeals, came after the Trump administration asked for an additional 18 months to review the newest claims.
Long-waited relief headed to thousands of student loan borrowers
If you're among the hundreds of thousands of student loan borrowers out there, long-awaited relief could be on the way.In July, defaults on student loans surged, reaching record levels as borrowers struggle to keep up with payments.FROM THE ARCHIVES | Is A College Education Still Worth It?An appeals court has since ruled that the Education Department has to forgive more than 170,000 borrowers who say they were misled by for-profit schools.The de…
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