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Ninth Circuit Rejects Education Department Bid to Delay Sweet v. McMahon Borrower Relief Deadlines

The Ninth Circuit left two Sweet v. McMahon post-class deadlines in place. Learn which school group and missed-decision date may apply, and how to follow up if your eligibility notice is missing.
From TheFinanceBase Team3 min to read
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The Ninth Circuit rejected the U.S. Department of Education’s attempt to extend key deadlines in Sweet v. McMahon, leaving the settlement deadlines in place for two groups of post-class Borrower Defense applicants. The ruling does not mean every affected borrower has already received a discharge or refund: Project on Predatory Student Lending (PPSL) reported in August 2026 that at least 807 class members were still waiting for required relief.

What the Ninth Circuit ruling means

On July 17, 2026, a three-judge Ninth Circuit panel unanimously rejected the Department’s appeal seeking to change key post-class deadlines in the settlement. PPSL says the decision leaves the district court’s deadlines in place and requires relief for more than 170,000 post-class borrowers whose applications did not receive timely decisions. That figure is PPSL’s case reporting, not a count of borrowers whose discharges have been completed. PPSL’s case page

PPSL’s July 17 statement summarizes the court’s conclusion as finding that the Department had not shown the “changed circumstances” needed to modify the settlement. According to PPSL, the Department knew the size of the post-class group when it agreed to the settlement and did not justify changing its obligations. This is PPSL’s account of the ruling; it is not a direct quotation from the court. PPSL’s July 17 statement

The case concerns federal Borrower Defense to Repayment applications, through which borrowers sought cancellation based on alleged school misconduct. Filed in 2019, Sweet v. McMahon challenged the Department’s failure to process those applications; the court approved the settlement in November 2022. This is a settlement about delayed Borrower Defense claims, not a general loan-cancellation program for all federal student-loan borrowers. PPSL’s case page

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Which deadline applies to your school group?

The settlement page separates post-class applicants according to whether their school appears on Exhibit C. For each group, it describes full settlement relief as available when the borrower had not received a decision by the specified deadline.

School group Decision deadline Who the settlement page describes as entitled to full relief Eligibility notice timing reported by PPSL
Exhibit C school January 28, 2026 Post-class applicants who had not received a decision by January 28, 2026 Around March 30, 2026
Non-Exhibit C school April 15, 2026 Post-class applicants who had not received a decision by April 15, 2026 By June 15, 2026

These are group-level settlement terms, not confirmation that a particular borrower qualifies or that a discharge has been processed. PPSL says relief should be delivered within one year of the date on the borrower’s eligibility notice. Check your own notice and Department records for your status and timing. PPSL’s settlement guidance

What to do if you have not received an eligibility notice

PPSL’s posted guidance recommends these steps if you believe you are a post-class applicant but cannot find your notice:

  1. Search every accessible email inbox, including spam, junk, and deleted folders, for messages from the Department of Education. PPSL says notices usually come from [email protected].
  2. If the notice is still missing, email [email protected] and copy [email protected].
  3. Include your name, email address, Borrower Defense number, and application date so the recipients can identify your case.

This is the case advocate’s posted guidance, not individualized legal advice. The case page also addresses borrowers who are unsure whether they are members of the “Sweet Post-Class”; use your application details and any Department notice to check your own status. PPSL’s case page

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Why a balance change does not prove a discharge is complete

PPSL notes that loan balances may fluctuate while servicers unwind loans as discharges are processed. A changing balance can therefore be part of processing, but it does not establish that your relief is complete. Use the eligibility notice and borrower-specific Department or servicer records to verify the status of your own discharge or refund. PPSL says relief is expected within one year of the notice date. PPSL’s settlement guidance

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Relief is still being implemented

The appellate decision kept the deadlines in place; it did not establish that every covered borrower had already received the required discharge or refund. In its latest case-page update, PPSL reported that at least 807 class members were still waiting for required discharges or refunds and that it filed motions on August 18, 2026, to enforce the settlement and seek contempt sanctions. PPSL’s case page

PPSL separately reported that the settlement as a whole provided at least $23 billion in relief for more than 500,000 borrowers. Those are settlement-wide figures, not totals for the post-class group discussed here. PPSL’s July 17 statement

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