More than 170,000 borrowers will have their student loan debt erased as part of a years-long class-action battle over about $23 billion in canceled loans.

The Education Department will erase roughly $11 billion in federal student loan debt owed by more than 170,000 borrowers after a federal appeals court rejected the Trump administration’s attempt to delay relief for students who claimed they were defrauded by their schools.

More than 170,000 federal student loan borrowers who say they were defrauded by their schools are set to have their debts erased after a federal appeals court rejected the Education Department's effort to delay relief.

A years-long legal battle that left hundreds of thousands of student loan borrowers in limbo is ending. 

After a recent court ruling, students who were defrauded by the schools they attended — mostly for-profit colleges that misrepresented the value their degrees could offer students — may soon get relief.

The sprawling case, centered on students defrauded by for-profit schools, has now become the largest class-action settlement in American history.

Hundreds of thousands of student loan borrowers have gotten their debts forgiven, or soon will, due to a $23 billion class-action settlement with the U.S. Department of Education.

The long legal battle to erase the debts of nearly half a million federal student loan borrowers who say they were defrauded by their colleges is finally coming to an end, after a recent court ruling in a lawsuit that has spanned three presidential administrations.

Student-loan forgiveness is finally here for thousands of borrowers.

A federal court denied the Department of Education's request to delay student-debt relief for borrowers entitled to relief under the Sweet vs. McMahon settlement. The settlement has allowed for $23 billion in relief for over 500,000 borrowers defrauded by their schools.

The Education Department must proceed with discharging student loan forgiveness for a group of eligible borrowers in a settlement case after a recent ruling from a federal appeals court.

The Friday decision marked a win for about 179,000 borrowers in the drawn-out Sweet v. McMahon settlement. In the ruling, the U.S. Court of Appeals for the Ninth Circuit rejected an appeal from the Department of Education to alter the initial settlement timeline since they hadn't expected a large amount of applications for loan relief. The borrowers applied in a five-month window stretching from June to Nov. 2022.

The decision is just the latest in the Sweet v. McMahon case, which was originally filed in 2019 under the first Trump administration. At the time, borrowers alleged that the Education Department was stonewalling their applications for borrower defense.

As of this April, the Education Department had discharged or refunded $12 billion for almost 300,000 borrowers under the settlement, the agency said in recent court documents.

Borrowers scored a major victory on Friday after a federal appeals court rejected a challenge to a landmark settlement agreement, and required the Education Department and Secretary of Education Linda McMahon to continue discharging the federal student loans for more than 500,000 Americans. The ruling represents the department’s latest loss in the long running saga over the Sweet v. McMahon settlement.

A new lawsuit alleges the U.S. Department of Education may not be discharging certain federal student loans as previously promised.

The lawsuit, filed by the Project on Predatory Student Lending, seeks data showing which loans have actually received discharges.

Years after the Department of Education promised to erase more than $23 billion in debt for 1.5 million student loan borrowers, a new lawsuit questions whether that promise was ever kept.

A new lawsuit filed against the U.S. Department of Education (ED) alleges the agency has failed to provide transparency regarding the status of promised student loan discharges affecting more than 1.5 million borrowers.

The legal challenge raises questions about whether billions of dollars in approved debt relief have actually been delivered.

Students seeking better jobs turn to for-profit colleges, often taking out federal loans only to discover many programs misled them with degrees that can be essentially worthless. 

“‘The government agreed to this settlement three years ago. It is fair to hold them to their word.” Plus, Ellis argued the government has pulled the rug out from under those who applied for relief back in 2022, some of whom have had their credit wrecked while their loans remain in forbearance. The panel did not indicate when it would rule.”’

A major deadline for certain federal student loans is only two weeks away, and failing to act could be a costly mistake for hundreds of thousands of borrowers. But many of them may not even be aware that they have to take action. Here’s what student loan borrowers should know about the upcoming consolidation deadline, and what’s at stake.

Student loan borrowers notched two major court victories this week. The wins should pave the way for tens of thousands of borrowers to receive automatic discharges of their federal student loans in the coming months, along with payment refunds and fixes to credit reporting.

In a sign of the Trump administration’s continued efforts to shutter the Department of Education, the agency is apparently pursuing selling off its $1.7-trillion student-loan portfolio to private entities.

Tens of thousands of student loan borrowers who say their schools misled them may soon find out whether that debt will be cleared after a Thursday ruling from a federal judge in San Francisco.