Judge Rejects Delay in Student Loan Forgiveness Cases

A federal judge has rejected a request by the Department of Education to delay student loan forgiveness decisions for more than 200,000 borrowers, marking a significant development in a long-running legal fight over disputed student loans.
Forbes noted that the ruling stems from Sweet v. Cardona, a class action lawsuit brought by student loan borrowers who say the federal government improperly stalled or denied applications under the Borrower Defense to Repayment program.
That program allows borrowers to seek loan forgiveness if their school misled them about costs, job prospects, or other key factors.
Under a settlement reached in 2022, the Education Department agreed to forgive loans for certain borrowers and set deadlines for reviewing pending claims.
One group of borrowers, known as Post Class Applicants, must receive decisions by January 28, 2026 or their loans are automatically discharged.
Last month, the department asked the court for an 18-month extension, arguing it lacked the staff and resources to finish reviewing roughly 200,000 remaining applications by that deadline.
The judge overseeing the case rejected that request.