Borrowers Still Await Court-Ordered Student Loan Relief, Advocates Say
A borrower advocacy group says more than 1,000 students in the Sweet settlement have not received the loan discharges or refunds the law requires.
In a new filing, the Project on Predatory Student Lending urged a court to enforce the Sweet v. McMahon settlement that promises $23 billion in relief to over half a million borrowers. The group claims that more than 1,000 members of the settlement class are still waiting for loan cancellations or refunds that the Education Department was legally obliged to provide. The department responded that the motions are unfounded and that pending refunds are under additional review, noting staff have been handling complaints since April 2024 with extra hires in 2025.
The plaintiffs’ motion requests the court compel the department to resume weekly update meetings and impose sanctions for non-compliance. A public hearing is scheduled for November 5.
Why it matters
Delayed loan relief affects thousands of borrowers who rely on court-mandated debt forgiveness.
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