Borrower Defense Case Back in The News
Attention Ross and AUC Graduates
We haven’t covered this case in a while — and honestly, that’s on us. We thought this chapter was closed. Apparently not. In a twist no one saw coming, the Department of Education’s staffing issues may end up benefiting a whole lot of borrowers.
Quick refresher. Back in 2022, a major lawsuit was filed against the Department of Education after the first Trump administration allowed more than 200,000 Borrower Defense claims — largely tied to for-profit schools — to sit untouched for years. That case eventually became the Sweet v. Cardona settlement. The original class of borrowers received automatic loan discharges.
As you’d expect, many more borrowers from the same schools filed Borrower Defense claims hoping to be included. That’s where the “Post-Class” and “Non-Class” groups came in, depending on when their applications were submitted. Post-Class borrowers didn’t receive automatic relief. Instead, the Department of Education was given 36 months to individually review their claims and make a decision on the merits. The deadline to complete those reviews was January 28, 2026.
And once again… DOE didn’t get it done. The administration asked the court twice for an 18-month extension. The judge denied both requests. Under the terms of the settlement, if the Department failed to review the Post-Class claims by the deadline, those loans would be discharged automatically.
So now, roughly 200,000 Post-Class borrowers are receiving loan discharges — even though their claims were never individually reviewed for legitimacy. On one hand, we’re genuinely happy for the borrowers who have been stuck in limbo for years waiting on answers. Many of them have carried this stress for a very long time. On the other hand, this outcome highlights just how broken the system has become. There was no formal review. No findings. No determination of merit. That’s not great for borrowers, schools, or taxpayers.
Refer to our original blog for more information.
Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.
