STATEMENT on DOJ Effort to Further Delay Borrower Defense Settlement Relief in Sweet v. McMahon
Justice Department Asks to Renege on Agreement Just Weeks Before Court-Ordered Deadline
BOSTON, MA (November 7, 2025)— Today, the Project on Predatory Student Lending (PPSL) and student borrowers are issuing a statement in response to a filing by the U.S. Department of Justice which requests an 18-month extension of a court-ordered deadline in theSweet v. McMahon (formerly Sweet v. Cardona) settlement, citing the federal government’s inability to complete its obligations in time. With less than 12 weeks to go before the settlement deadline, this request would further delay legally owed relief to nearly 200,000 borrowers in the class action lawsuit.
The Sweet v. McMahon settlement, approved in November 2022, gave the Department of Education more than three years to issue decisions on borrower defense applications for “post-class” members — largely former students of predatory for-profit colleges whose applications were filed between June and November 2022. Under the settlement agreement, if the government does not issue decisions by the deadline, post-class members are entitled to receive full settlement relief, including discharges of all loans from their borrower defense school.
PPSL’s response to the Department’s motion is due on November 20, 2025, and the issue will be argued at the December 11, 2025, status conference.
Statement from Eileen Connor, President and Executive Director of the Project on Predatory Student Lending
“The government’s years-long failure to do what it promised to do does not negate a legally binding, court-ordered settlement deadline. Borrowers filed this lawsuit more than 5 years ago on the basis of delay and neglect, and the Department of Education has had 3 years to issue decisions and discharges under the settlement.
Now, at the eleventh hour, and after telling the court for the past year that they planned to meet the deadline, the government is trying to excuse its noncompliance. If the Department of Education truly cannot meet the deadlines it agreed to, then it must accept the consequences it agreed to: granting full settlement relief to everyone who does not receive a timely decision.
This delay is not harmless. It keeps lives on pause, and fraudulent loans hanging over people’s heads, destroying their credit and inflicting needless damage to their financial well-being. The government’s request is outrageous and we look forward to arguing that in court.”
About the Sweet v. McMahon Case
The Sweet case was brought on behalf of federal student loan borrowers who were defrauded by for-profit colleges and whose borrower defense claims were unlawfully delayed or ignored by the Department of Education. The case resulted in a landmark settlement requiring the government to cancel loans or issue timely decisions under a strict court-ordered schedule. Relief under the settlement is valued at over $6 billion, ultimately impacting over 500,000 borrowers across all classes.
The case was originally filed as Sweet v. DeVos, later updated toSweet v. Cardona, and is now Sweet v. McMahon, following changes in federal leadership.
For more information about the case, visit PPSL’s webpage on Sweet v. McMahon.
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.
