Trump administration looks to delay last round of student loan relief in Borrower Defense settlement

Source: The Hill

11/07/25 5:26 PM ET


The Trump administration asked for additional time Thursday to determine whether a group of about 200,000 student loan borrowers are entitled to loan forgiveness.

Under Cardona v. Sweet, the Biden administration agreed to settle student loan relief applications under Borrower Defense filed before June 22, 2022, in three different groups within a certain timeline. The case is now known as Sweet v. McMahon settlement.

The borrowers applied for relief using the Borrower Defense program, which allows student loan relief if a person was defrauded by a school. Some of the applications under the settlement had been pending for more than seven years.

While the first two classes received decisions on their applications on the agreed upon timeline, the Education Department is asking for an extension for the last group of about 200,000 borrowers that is currently expected to receive decisions on their applications at the end of January. If a decision is not made by Jan. 28, all the borrowers get their loan forgiven, totaling $12 billion.

Read more: https://thehill.com/homenews/education/5595814-trump-administration-student-loan-settlement/