STATEMENT: SCOTUS Reaffirms Validity of Sweet v. McMahon Borrower Defense Settlement

By refusing to hear the intervenor’s petition, SCOTUS ends challenge to the settlement’s validity and confirms that the intervenors have no legal claim in this case  

BOSTON (February 23, 2026) – Today, the Supreme Court denied review of a petition filed by Everglades College, Inc., asking SCOTUS to invalidate the $6 billion borrower defense settlement in Sweet v. McMahon. The decision puts to rest any lingering questions of the settlement’s validity. 

Everglades was one of four institutions—alongside Lincoln Educational Services Corporation, American National University, and the Chicago School of Professional Psychology—that attempted to intervene in the case to challenge the settlement. Their attempts to delay settlement relief have now been denied six times: twice by Federal District Court Judge William Alsup, twice by the Ninth Circuit Court of Appeals, and twice by the Supreme Court. 

Statement from Eileen Connor, President and Executive Director of the Project on Predatory Student Lending: 

“Today’s decision confirms what we have said all along: Everglades and the other intervenors had no basis to challenge this agreement. 

For the second time, the Supreme Court has refused to hear meritless arguments brought by entities with no legal claim in a lawsuit between student borrowers and the federal government. At every level of the judiciary, their efforts to delay relief have failed. 

This decision finally puts an end to this bogus dispute. We will continue enforcing this legally binding settlement until every class member receives the relief they are owed.” 

About the Project on Predatory Student Lending         

The Project on Predatory Student Lending (PPSL) is the leading legal organization representing student borrowers against predatory for-profit colleges and the policies that enable institutions to exploit and cheat students. PPSL uses bold, strategic litigation and advocacy to demand accountability in the higher education space and influence policy solutions to create a more just and affordable education system. PPSL represents more than two million student borrowers and its work has resulted in cancellation of more than $30 billion of fraudulent student loan debt.      

For more details on the settlement, visit the FAQ on our website.