170,000 Americans get student loan debt erased in historic settlement
A federal court has refused the Department of Education’s bid to delay relief by 18 months, unlocking $11 billion in cancellations for borrowers who filed borrower-defense claims during a 2022 filing window. The Sweet v. McMahon class action, filed in 2019, targeted the government’s failure to process claims from students defrauded by collapsed for-profit schools like Corinthian Colleges. Advocates call it the largest settlement against the U.S. government in history — a model for winning relief through litigation, not executive action. Still, millions of borrowers fall outside it, and the $11 billion is a sliver of the $1.66 trillion Americans owe.









