FAQs for the Sweet v. McMahon Settlement

For the latest on the Sweet v. McMahon (formerly Sweet v. Cardona and Sweet v. DeVos) litigation, as well as relevant upcoming dates and case documents, please visit our case page. 

Be aware that there may be scammers contacting you regarding the Sweet v. McMahon lawsuit and settlement. As the Federal Trade Commission (FTC) says: Don’t pay anybody for anything related to your borrower defense claim. Nobody can move you up in line, give you special access, or guarantee a successful application. Not for free, and certainly not for money. And only scammers will ask. And if you spot a scam, tell the FTC: ReportFraud.ftc.gov. Visit the FTC’s website for more information. 

Most Frequently Asked Questions

  • In most cases, if you did receive a decision, it would have arrived by email, from the email address noreply@studentaid.gov. Please check all of your email inboxes, junk/spam folders, and deleted/trash folders for messages from this address.

    The Department most often sends messages to the email address that you currently have on file in your Federal Student Aid account. However, if you used a different email address on your BD application, the message might have gone to that address instead. If you do not have an email address on file with Federal Student Aid, or if your email address on file is no longer valid (that is, email sent there is returned as undeliverable), your decision might have been sent by U.S. Mail. In the vast majority of cases, though, the notices are sent by email.

    If your Federal Student Aid online account still shows your BD application as “pending” or “in process,” it is likely that you did not receive a decision by the deadline.

    At this time, we are not able to confirm whether individual borrowers did or did not receive a decision by the deadline. We hope to obtain that information from the Department, and will update this FAQ if and when we do.

  • Right now, there is nothing else you need to do.

    Under the Settlement Agreement, the Department is supposed to send you a notice by March 29, 2026, informing you that you are entitled to Full Settlement Relief. However, the Department has asked the court to delay that deadline. We are fighting the government’s request in court and will update this page in response to any developments.

  • Post-Class Applicants who receive denials can request reconsideration through the FSA portal. Check out PPSL’s recent blog post, ​​Tips for Submitting a BD Reconsideration Application. All Post-Class Applicants who received denials are eligible to submit for reconsideration. There is no formal deadline for borrowers to submit reconsideration requests, but because there is also no formal deadline for the Department to return decisions on those requests, we encourage you to act quickly. 

     We are aware that some Post-Class Applicants have experienced issues with the reconsideration button in the portal and/or the size limit of attachments allowed in the portal. We recommend that Post-Class Applicants email a copy of any supporting materials that do not fit the file size limit, along with a copy of their reconsideration request, to sweet@ed.gov. State in the email that you are a Post-Class Applicant who is filing for reconsideration of a denial and you are requesting that the Ombudsman’s office associate the materials attached to the email with your account in the BD system. If you experienced issues with the button, also state that in the email and attach screenshots as evidence.

  • Under the settlement agreement, Full Settlement Relief consists of (i) discharge of the outstanding loans that were the subject of your borrower defense application, (ii) refunds of any amounts you paid to the federal government toward those loans, and (iii) deletion of the credit tradeline associated with those loans from your credit report.

    Depending on the type of loan you had, it is possible that not all your payments were made “to the federal government” – even if your loans were called “federal student loans.” For more information about refund eligibility, please see “I am a Class Member with FFEL(P) loans, how does this affect my relief?” below.

  • We understand that recent actions by the current administration have raised a lot of uncertainty around the Department of Education. The situation with the Department seems to be changing every day, and we understand the stress this is causing. But these actions have not changed, and will not change, the Department’s obligations under the settlement, which is a legally binding contract overseen by the court. If necessary, as we have done before, PPSL will use the settlement agreement's enforcement provisions to ensure that the Department complies with all its obligations.

  • Please note that this notice may have been sent to an email you no longer have access to or been routed to your spam folder. Before contacting us about this issue, please search every email inbox, spam folder, and/or junk folder you have access to for an email from noreply@studentaid.gov. The email might have one of the following subject lines, as appropriate for your situation:

    • Approval of Your Borrower Defense Case Under Exhibit C of the Sweet v. Cardona Settlement

    • Sweet v. Cardona [or McMahon] Settlement: Borrower Defense Notice to Revise and Resubmit

    • Sweet v. Cardona [or McMahon] Settlement: Borrower Defense Notice of Approval

    • Sweet v. Cardona [or McMahon] Settlement Post-Class Applicant Borrower Defense Notice

    If you are a member of the Automatic Relief Group or a Decision Group and you are unable to locate a notice/decision after searching for it, please email sweet@ed.gov, with a copy to info@ppsl.org, with your name, borrower defense application number (if available), and a description of the decision or notice that you believe you are missing. If you are a Post-Class Applicant and you did not receive a decision by the January 28, 2026 deadline, please see “I am a Post-Class Applicant, what does this mean for me?” below.

  • Borrowers who submitted a borrower defense application on or before June 22, 2022 (the day the settlement agreement was signed) AND whose borrower defense application relates to a school on the Exhibit C list are part of the automatic relief group. If you are in the automatic relief group, you should have already received Full Settlement Relief. If you have NOT received Full Settlement Relief, please email the FSA Ombudsman at sweet@ed.gov, with a copy to info@ppsl.org, and let us know what relief you are missing. The FSA Ombudsman has been designated as the official point of contact at the Department of Education for Class Members to direct questions about the status of their relief. In your email, please include your full name (and any other name or email address you might have used at the time you applied), and your borrower defense application number (if available).

    We are unable to answer individual questions about refund amounts owed to Class Members. However, please be aware of the following:

    Your refund might be disbursed via multiple checks and/or direct deposits. Before emailing sweet@ed.gov about missing refunds, please check your bank records for deposits from the U.S. Department of Treasury.

    Your refund checks will not necessarily have anything written on them that refers to the Sweet case, borrower defense, or student loan refunds. They might simply appear as checks from the U.S. Department of Treasury.

    Please also note that if you made payments on FFEL(P) loans, you might not be entitled to a refund on those payments. For more information, please see “I am a Class Member with FFEL loans, how does this affect my relief?” below. If you are not sure what type(s) of loans you have, please see the guidance under “Does the type of federal student loan I have (Direct, FFEL, Consolidated, etc.) affect my settlement relief?” below

  • The timing of your relief will depend on when you submitted your borrower defense application. 
    Please see the descriptions below for a relief timeline:

    Decision Group 1

    Decision group members in group 1 (people who applied for borrower defense on or before December 31, 2017) whose applications were approved should have received Full Settlement Relief by December 20, 2024. If you were approved but have NOT received Full Settlement Relief, please email sweet@ed.gov, with a copy to info@ppsl.org, explaining which type(s) of relief (discharge, refund, credit repair) you are missing. In your email, please include your full name (and any other name or email address you might have used at the time you applied) and your borrower defense application number if you have it.

    Decision Group 2

    Decision group members in group 2 (people who applied for borrower defense between January 1, 2018, and December 31, 2018) whose applications were approved should have received Full Settlement Relief by January 28, 2025. If you were approved but have NOT received Full Settlement Relief, please email sweet@ed.gov, with a copy to info@ppsl.org, explaining which type(s) of relief (discharge, refund, credit repair) you are missing. In your email, please include your full name (and any other name or email address you might have used at the time you applied), and your borrower defense application number if you have it.

    Decision Group 3

    Decision group members in group 3 (people who applied for borrower defense between January 1, 2019, and December 31, 2019) whose applications were approved should have received Full Settlement Relief by July 28, 2025. If you were approved but have NOT received Full Settlement Relief, please email sweet@ed.gov, with a copy to info@ppsl.org, explaining which type(s) of relief (discharge, refund, credit repair) you are missing. In your email, please include your full name (and any other name or email address you might have used at the time you applied), and your borrower defense application number if you have it.

    Decision Group 4

    Decision group members in group 4 (people who applied for borrower defense between January 1, 2020, and December 31, 2020) whose applications were approved should have received Full Settlement Relief by January 28, 2026. If you were approved but have NOT received Full Settlement Relief, please email sweet@ed.gov, with a copy to info@ppsl.org, explaining which type(s) of relief (discharge, refund, credit repair) you are missing. In your email, please include your full name (and any other name or email address you might have used at the time you applied), and your borrower defense application number if you have it. 

    If you are a member of group 4 who resubmitted your application after receiving a revise and resubmit notice, you should have received a decision on your resubmitted application by January 28, 2026. If you have not received a revise and resubmit decision, please email sweet@ed.gov, with a copy to info@ppsl.org, explaining your situation. In your email, please include your full name (and any other name or email address you might have used at the time you applied), your borrower defense application number if you have it, the date you resubmitted, and any evidence you have of your resubmission (such as screenshots). 

    Decision Group 5

    Decision group members in group 5 (people who applied for borrower defense between January 1, 2021, and June 22, 2022) whose applications were approved should receive Full Settlement Relief by July 28, 2026. Please be patient as the distribution of relief for this group is currently in process.  

    The “revise and resubmit” deadline passed for decision group 5 on January 28, 2026. You should receive a decision on your resubmitted application within six months of the date you submitted it. If you had any problems submitting your revised application, please email sweet@ed.gov, with a copy to info@ppsl.org, as soon as possible. In your email, please include your full name (and any other name or email address you might have used at the time you applied), your borrower defense application number if you have it, and a description of the problem you encountered, including evidence if available (such as screenshots).

  • On December 11, 2025, the District Court confirmed that the Department had to decide all Post-Class applications relating to an Exhibit C school by January 28, 2026. The Court extended the decision deadline for Post-Class applications relating to other schools to April 15, 2026.  

     If your application has been approved, you should receive your settlement relief within one year of the date when you received your approval notice. 

    If your application has been denied, there are still steps you can take. Please see “I am a Post-Class Applicant and I received a denial” below. 

     If your Post-Class application is related an Exhibit C school and you did not receive a decision by January 28, 2026, then you are entitled to Full Settlement Relief. As you may have heard, lawyers for the Department of Education have filed a motion with the court asking for more time to issue decisions on Post-Class applications. This request is directly contrary to the language of the Settlement Agreement and the binding court order approving the Settlement, which are clear that Post-Class Applicants who did not receive a decision by January 28 shall receive Full Settlement Relief. We are defending the Settlement in court and will fight to make sure that Post-Class Applicants do not wait a day longer for relief than the Settlement allows. 

    If your Post-Class application did NOT relate to an Exhibit C school, then you should receive a decision on your application by April 15, 2026. It is possible that the Department will ask to extend this deadline; please check our case page for the latest updates. 

  • If you submitted borrower defense applications related to multiple schools, your applications may be in different groups. For instance, if you submitted two applications in January 2021, with one relating to an Exhibit C school and the other relating to a non-Exhibit C school, your first application would be in the automatic relief group and your second application would be in the decision group.

    If you submitted more than one borrower defense application at different times, your applications may be in different groups. For instance, if you submitted an application relating to an Exhibit C school in January 2021 and another application relating to a different Exhibit C school in August 2022, your first application would be in the automatic relief group and your second application would be in the post-class.

  • There are two types of FFEL(P) loans: some are held by the government, and some are held by private bank lenders. Loans held by private bank lenders are known as “commercially held FFELs.”  

    FFEL and FFELP loans are considered “federal student loans” for purposes of the settlement. This means that, if you are entitled to relief through the settlement, any FFEL and FFELP loans that were the subject of your BD claim(s) will be discharged. If you consolidated FFEL loans from multiple schools into one or more FFEL consolidation loans, only the portion of the consolidation loan(s) that relates to the school(s) covered by your borrower defense application will be discharged. 

    If your FFEL or FFELP loans were commercially held and you made payments on those loans, then you will NOT be entitled to a refund of those payments. Although both are considered “federal loans” because they were authorized by federal law, payments that you made on commercially held FFEL or FFELP loans were made to bank lenders, not to the Department of Education. For that reason, such payments will not be included in any refund you receive under the Sweet settlement, because the Department of Education does not have the legal authority to refund payments made to commercial lenders. However, if you consolidated your FFEL or FFELP loans into Direct Consolidation Loans, then any payments you made on the Direct Consolidation Loans will be eligible for a refund. 

    If you experienced Treasury Offset (seizure of your tax refund) or administrative wage garnishment on a defaulted commercial FFEL loan, then the amounts seized through those processes WILL be refunded. We are currently working with the Department of Education on a process to identify and refund these payments. Please be patient.  

  • If you are a Class Member or Post-Class Applicant, your application was approved, and you consolidated Sweet-eligible and non-Sweet-eligible loans together into one or more Direct Consolidation Loans, the entire balance of your “mixed” Direct Consolidation Loan(s) will be discharged, and you will be refunded all payments you made on that loan(s) and any underlying, non-mixed, Sweet-eligible loans.

    If this refund amount is less than the sum of all payments you made to the Department of Education toward your Sweet-eligible loans, including payments you made on Sweet-eligible Direct Loans or Department-held FFEL loans before your final consolidation, you will be able to claim additional refunds through an administrative process. We are notifying eligible Class Members directly if and when they are able to submit requests for further refund calculations. For information about FFEL consolidation loans, please see “I am a Class Member with FFEL(P) loans, how does this affect my relief?” above. 

Class Membership 

  • The settlement agreement defines the settlement class as “all individuals who had a borrower defense application pending as of June 22, 2022.” Additionally, under the settlement, the Department of Education agreed to rescind all borrower defense denials that it issued between December 2019 and October 2020. If you received a form denial notice during that time period, the Department will treat your original application as if it had never been denied and you will be a member of the class. 

  • The settlement divides the class—all individuals who had a borrower defense application pending as of June 22, 2022—into two groups.      

    The first group is the automatic relief group. You are a member of this group if you are a Class Member who submitted a borrower defense application relating to a school or schools on this list (often referred to as the “Exhibit C” list). If you are in this group, then you are entitled to the following relief: (i) discharge of the outstanding loans that were the subject of your application, (ii) refunds of any amounts you previously paid to the federal government toward those loans, and (iii) deletion of the credit tradeline associated with those loans from your credit report (“Full Settlement Relief”).  The original deadline for all members of the automatic relief group to receive Full Settlement Relief was January 28, 2024. The Department of Education failed to meet that deadline, and Plaintiffs sought enforcement by the court. For more information about what to expect if you are in the automatic relief group and have not yet received Full Settlement Relief, please see above, “I’m a Sweet Class Member in the automatic relief group, but I have not yet received relief, or I have received less relief than I was expecting.”

    The second group is the decision group. You are a member of this group if you are a Class Member who submitted a borrower defense application relating to a school or schools not on the Exhibit C list. If you are in the decision group, you should have received an individual decision on your entitlement to settlement relief according to a set timeline. If the Department of Education failed to issue a decision within the timeline, you will receive Full Settlement Relief within one year of the missed deadline. 

    At this time, all decision group members should have received at least an initial decision on their applications. If you believe you have not received a decision, please check all of your email accounts (see “I should have received notice or a decision by now, but I did not receive it” above). If you still cannot locate your decision, please email sweet @ed.gov, with a copy to info@ppsl.org, right away. In your email, please include your full name (and any other name or email address you might have used at the time you applied), and your borrower defense application number if you have it. 

    If you are in the decision group and your application was approved, you will receive Full Settlement Relief (the same benefits as members of the automatic relief group). You will receive this relief within one year of the date you receive your approval decision. If you have not received relief within one year of the date of your approval, see “I am a Sweet Class Member in the automatic relief group, but I have not yet received relief, or I have received less relief than I was expecting” above. 

     If you are in the decision group and you received a “revise and resubmit” notice, the deadlines to resubmit have now passed.  

     If you submitted a revised application, the Department of Education had six months to either grant relief or issue a final denial notice from the date you submitted. If you are in decision groups 1 through 4, you should have received a decision on your resubmitted application by now. If you have not received it, please email sweet@ed.gov, with a copy to info@ppsl.org. Resubmitted applications for decision group 5 are still pending, and should be completed on or before July 28, 2026. 

     If you chose not to resubmit, your revise and resubmit notice has now converted to a final denial. You will not receive a notice of the conversion to denial. If your application is denied, you have the right to challenge that denial in federal court.     

    If you submitted a borrower defense application related to a Corinthian Colleges school, please see the Corinthian question below. 

  • If you applied for borrower defense after June 22, 2022, but before November 16, 2022 (the date of final approval of the settlement), then you are a “Post-Class Applicant.” 

    Recent developments in court have affected the deadlines for Post-Class Applicants. For more information, see “I am a Post-Class Applicant, what does this mean for me?” above. 

  • If you applied for borrower defense after November 16, 2022, then you are not affected by the Sweet settlement. Your application will be decided by the Department of Education according to the applicable regulations.

  • Yes! If your school misled you, violated state laws, or engaged in other misconduct that affected your decision to borrow federal student loans, you can still apply for borrower defense. However, if you apply for borrower defense now (any time after November 16, 2022), no aspect of the settlement will affect your application. Borrowers can apply for borrower defense here. For an informational guide on applying for borrower defense, click here. 

    You can apply for borrower defense even if you are currently enrolled in the school you would be applying for. Borrower defense can apply to any federal student loan that has already been disbursed.

  • In order to get settlement relief relating to Parent Plus loans, a parent must have applied for borrower defense separately from their child (the student) during the applicable settlement time frames, even if the student is already included in the class.

    If you are a parent borrower, and you applied for borrower defense to repayment of a Parent Plus loan on or before June 22, 2022, you are a member of the settlement class. If you applied for borrower defense for a Parent Plus loan after June 22, 2022, and before November 16, 2022, you are a Post-Class Applicant.  If you applied for borrower defense for a Parent Plus loan after November 16, 2022, or if you apply now, your application will be decided according to applicable regulations, not under the Sweet settlement. 
    Parent borrowers can and should apply for borrower defense if they have not already, even though the time has passed to receive any benefit related to the settlement. Parent borrowers can apply for borrower defense here. For an informational guide on applying for borrower defense, click here. In their applications, parents should specify that they are applying in relation to the loan they took out for the school that the student attended, and they should detail the school misconduct that the student experienced. If the student’s loans were discharged, the parent should also mention that in their application.

Settlement Relief

  • Regardless of your type of loan, if the Department of Education garnished from your wages and/or took from your income tax refunds in connection with the loans that were the subject of your borrower defense application, those garnishments will be refunded.

    We are aware that there have been delays for many borrowers in receiving refunds for past tax and wage garnishments. We are working with the Department to ensure that this relief gets delivered.

  • No, to receive Sweet relief, you must have submitted a borrower defense application for each school for which you were requesting a discharge. You can still submit a borrower defense application for the other Exhibit C school(s) you attended, but that application will be decided under the applicable regulations, not under the Sweet settlement procedures. 

     The one exception to this general rule is if you consolidated your BD-related loans and your other loans together into one or more Direct Consolidation Loans. If you did that, and you are approved for settlement relief, then the entire balance of your current Direct Consolidation Loan(s) will be discharged as part of settlement relief, including the portion of the balance that derives from the non-BD school.  

    Additionally, some Exhibit C schools were covered by the Department of Education’s group discharge process. If you attended one of the following schools, you might be eligible for group discharge even if you did not submit a borrower defense application: 

    • ITT Technical Institute 

    • Corinthian Colleges (Everest, Heald, or Wyotech)  

    • Westwood College 

    • Art Institutes 

    • Marinello School of Beauty 

    • Ashford University 

    • Schools owned by the Center for Excellence in Higher Education (CEHE) (CollegeAmerica, Stevens-Henager College, Independence University, or California College San Diego) 

    • Drake College of Business 

    • Lincoln Technical Institute campuses in Lowell or Somerville, MA 

    • Minnesota School of Business/Globe University (Criminal Justice programs)   

    Please see the Department of Education’s website here to learn more about group discharges. If you attended one of the schools listed above during the relevant time period, but you have not yet received notice that you are approved for group discharge relief, please email info@ppsl.org and tell us about your situation. 

Return to Repayment

  • No. 

    The Department of Education will hold Class Members in forbearance or stopped collection status, and will reimburse you for any accrual of interest, until you receive your settlement relief or, where applicable for members of the decision group, until a decision denying settlement relief becomes final. For Direct Loans, this should happen automatically; for commercially held FFEL loans, you may have to notify your servicer that you are eligible for an administrative forbearance based on borrower defense.

    If your servicer places you back into repayment status, or if your servicer refuses to honor your request for borrower defense forbearance, please contact sweet@ed.gov right away, with a copy to info@ppsl.org. If you are a Post-Class Applicant or if you applied for borrower defense after November 16, 2022, you can still ask your servicer to place your loans in Borrower Defense forbearance until you receive a decision. However, like with other types of forbearance, interest will still accrue on your loans while your Borrower Defense application is pending. Whether you receive a refund of that interest upon resolution of your Borrower Defense application will depend on the applicable regulations.

    Please note, Borrower Defense forbearance will not apply to federal student loans that were not covered by your Borrower Defense application. If you have loans from another school that weren’t the subject of your application, those will return to repayment status. Additionally, neither the Sweet case nor applying for Borrower Defense in relation to your federal loans will impact any private loans you may have from the school for which you applied for Borrower Defense. 

    If you have not received settlement relief approval and you do NOT want to remain in borrower defense forbearance while you wait (for example, because you want to make qualifying payments toward Public Service Loan Forgiveness), you can ask your servicer to remove your forbearance and apply for an income-driven repayment plan. If your servicer refuses to remove the forbearance, please email sweet@ed.gov with an explanation of your situation. 

  • While servicers should know about Sweet relief and Borrower Defense forbearance, sometimes servicer representatives do not have the appropriate or accurate information. If this happens, reach out to sweet@ed.gov and your servicer’s Ombudsman’s office. Regardless of what your servicer says, if you received a notice from the Department of Education about this settlement, that is the most accurate statement regarding your Sweet relief.    

  • If you are a Class Member (in the automatic relief or decision group) you will not owe any interest on your Direct or FFEL loans for the period between final approval and the date you receive your discharge or final decision. During that time, you may see interest appear on your account. This is due to internal Department of Education processes. Any interest that appears during this time will ultimately be removed even if, for decision group Class Members, your application is eventually denied.

    If you are a Post-Class Applicant who elects to remain in a Borrower Defense forbearance, interest will accrue on your loans while you await a decision. If your Borrower Defense application is ultimately approved, that interest will be discharged, subject to applicable regulations. If your application is denied, the interest will remain on your account.

    The Sweet litigation cannot prevent interest from accruing on private loans. If you are not sure whether you have private loans, you can call your servicer and ask, or you can cross-reference your credit report with your Federal Student Aid (FSA) information. If you do have private loans relating to the school that was the subject of your borrower defense application, please see our Private Loans page for more information.

Details of the Settlement for Different Types of Loans 

  • If you are approved for settlement relief and you have Direct Consolidation Loan(s) that include loans from your borrower defense school, then the entire balance of your currently outstanding Direct Consolidation Loan(s) will be discharged. You will also be eligible for a refund of payments you made on your Direct Consolidation Loans, even if the underlying loans you consolidated were originally FFEL loans. Please see “I am a Class Member, and I am unsure what relief I am owed on my consolidation loans” above.

    You can see whether you have a Direct Consolidation Loan or FFEL Consolidation Loan by logging into your account with Federal Student Aid or your federal loan servicer.

    There are two types of FFEL(P) loans: some are held by the government, and some are held by private bank lenders. Loans held by private bank lenders are known as “commercially held FFELs.” 

    FFEL and FFELP loans are considered “federal student loans” for purposes of the settlement. This means that, if you are entitled to relief through the settlement, any FFEL and FFELP loans that were the subject of your Borrower Defense claim(s) will be discharged. If you consolidated FFEL loans from multiple schools into one or more FFEL consolidation loans, only the portion of the consolidation loan(s) that relates to the school(s) covered by your Borrower Defense application will be discharged.

    If your FFEL or FFELP loans are commercially held and you made payments on those loans, then you will not be entitled to a refund of those payments. Although both are considered “federal loans” because they were authorized by federal law, payments that you made on commercially held FFEL or FFELP loans were made to bank lenders, not to the Department of Education. For that reason, such payments will not be included in any refund you receive under the Sweet settlement, because the Department of Education does not have the legal authority to refund payments made to commercial lenders.  However, if you consolidated your FFEL or FFELP loans into Direct Loans, then any payments made on the Direct Loans will be eligible for a refund.

    If you are currently having problems with your servicer related to billing on a Direct or FFEL Consolidation Loan that includes Sweet-eligible loans, please email sweet@ed.gov  with a copy to info@ppsl.org, with your name, borrower defense application number (if available), and a description of the problem. 

    If you previously consolidated your federal student loans into a private consolidation loan – for example, with a lender such as SoFi, Earnest, or CommonBond – then you will receive some settlement relief in certain circumstances. 

    If you refinanced Direct Loan(s) or government-held FFEL loan(s) with a private refinancer AFTER you applied for Borrower Defense with respect to those loans, then you WILL get a refund of the amount paid to the government by the refinancer. However, you will still owe your private lender any outstanding balance that you have with that lender, and the refinanced loan will continue to appear on your credit report until it is paid off. (The Department of Education does not have the legal authority to discharge loans that are currently held by a private lender, even if those loans were originated as federal loans.)

    If you refinanced with a private lender BEFORE you applied for Borrower Defense, then you will not receive settlement relief.

    For a more detailed view of your federal student loans and grants, you can download your National Student Loan Data Systems profile which contains your federal loan and grant history, including information on federal loan type (i.e., Direct, Perkins, or FFEL). This profile does NOT include private loans. Please find instructions on how to download it here.

  • If you previously consolidated your federal student loans into a private consolidation loan – for example, with a lender such as SoFi, Earnest, or CommonBond – then you will receive some settlement relief in certain circumstances.  If you refinanced Direct Loan(s) or government-held FFEL loan(s) with a private refinancer AFTER you applied for borrower defense with respect to those loans, then you WILL get a refund of the amount paid to the government by the refinancer. However, you will still owe your private lender any outstanding balance that you have with that lender, and the refinanced loan will continue to appear on your credit report unless and until it is paid off. (The Department of Education does not have the legal authority to discharge loans that are currently held by a private lender, even if those loans were originated as federal loans.)

  • First, you do not have to consolidate any of your loans to receive Sweet relief. If anyone tries to tell you otherwise, it could be ascam. 
    If you want or need to consolidate your current federal loans for another reason (such as enrollment in an income-driven repayment plan or Public Service Loan Forgiveness), you can consolidate into a federal Direct Consolidation Loan. If you are a Class Member or a Post-Class Applicant, federal consolidation will not have a negative effect on the relief you are eligible for under the Sweet settlement.

    Consolidating any federal loans into a private loan (with a lender such as SoFi, Earnest, or CommonBond or, for example, a private loan with Navient) could waive certain rights you have with respect to your federal loans. The National Consumer Law Centerwarns, “It is dangerous to consolidate federal loans into a private consolidation loan. If you consolidate into a private loan, you lose the rights you have under the federal loan program, including rights to cancel or reduce your loan payments. Private lenders may even offer you bonuses if you agree to consolidate with them, but this may not be the right choice for you. Read the fine print!”

Interaction of Sweet With Other Discharges/Benefits 

  • No, you cannot get credit toward PSLF if you are in Borrower-Defense-related administrative forbearance.

    If you want to keep making qualifying payments toward PSLF, you can opt out of administrative forbearance by contacting your loan servicer and telling them that you want to resume payments under a qualifying PSLF payment plan. Please be aware, however, that  
    servicers are currently severely backlogged in processing income-driven repayment applications, and the One Big Beautiful Bill Act has changed income-driven repayment options. If you qualify for Sweet relief, you should receive a refund of any amounts paid to the Department of Education toward Direct or Direct Consolidation loans, including a refund of prior qualifying PSLF payments. 

  • On June 1, 2022 – shortly before the parties in the Sweet case reached a settlement – the Department announced that it would cancel all outstanding loans related to Corinthian schools, including for people who had not already applied for borrower defense.  

    Class Members who applied for Borrower Defense for their Corinthian-related loans will receive the same relief as other Class Members in the automatic relief group (full discharge, refunds of payment to the Department of Education, and deletion of the credit tradeline(s)).  

    If you are a Class Member who applied for Borrower Defense for a Corinthian school, and you have not received Full Settlement Relief yet, please email sweet@ed.gov, with a copy to info@ppsl.org, and let us know what relief you are missing. 

    If you are a Class Member who attended one of these schools before Corinthian ownership, your application will be placed into the decision group, and you will receive a decision within the applicable time frame.  

    If you are a Post-Class Applicant who attended Everest, Heald, or Wyotech, but you have not yet received a discharge of your Corinthian loans, we want to hear from you. Please visit our Get Help page.

  • If you are a Class Member in the automatic relief group, the Department of Education’s announcements about cancellation of federal student loans for the schools listed above do not change the relief that you will receive. Because each of these schools was on the settlement agreement’s Exhibit C list, you are still considered part of the automatic relief group, and you should have received Full Settlement Relief already. If you have not received Full Settlement Relief, please email sweet@ed.gov, with a copy to info@ppsl.org, and let us know what relief you are missing.  

     If you are a Class Member who applied for Borrower Defense for Drake College of Business, you would have been included in a Decision Group, because that school was not listed on Exhibit C. You should now receive relief through the group discharge process. If you attended Drake College of Business but your decision group application was denied, please contact us right away at info@ppsl.org. 

     If you are a Post-Class Applicant and you are eligible for group discharge for one or more of the schools listed above, your Post-Class application should have been approved. If you are a Post-Class Applicant whose Post-Class application for a group discharge school was denied, please respond to our Post-Class results survey.  

  • Some Class Members may currently be receiving assistance from SNAP/Food Stamps, Social Security, or similar public benefits programs. If you are getting public assistance and you receive a refund, you should be aware that the refund may impact your eligibility for benefits. Eligibility is different depending on the type of benefits you receive, whether it is state or federal, and which state you live in.

    You can visit the National Academy of Elder Law Attorneys (NAELA) for assistance. NAELA attorneys, although specializing in legal issues for those who are 65 and older and/or are disabled, have experience in and information on how refunds like this can affect eligibility for public assistance. Lastly, you can look here to find your local legal aid office.

  • Under the American Rescue Plan Act of 2021, all student loan discharges are federally tax-free until December 31, 2025. That includes discharges under the Sweet settlement. However, if your loans are discharged after January 1, 2026, even pursuant to the Sweet settlement, there may be federal income tax implications and you should consult with a tax advisor.

    If you are a Post-Class Applicant and you receive student loan cancellation after January 1, 2026, your discharge should still be federally tax-free under Internal Revenue Service (IRS) Procedure 2015-57, which provides that the IRS will not assert that federal student loans discharged under the Borrower Defense to repayment process qualify as recognizable gross income. As always, you should consult with a tax advisor.

    State income tax policies with respect to student loan discharges may vary. If you have questions about state income taxes, we recommend that you seek out resources from your state of residence and contact a tax advisor.

  • The Sweet settlement does not reinstate GI benefits applied to attend the school that was the subject of your borrower defense application.

    The U.S. Department of Veterans Affairs has information on the restoration of benefits after school closure, or if a school is disapproved for GI Bill benefits, here.

  • The Sweet settlement itself does not have a specific provision for Pell eligibility restoration. However, Class Members and Post-Class Applicants who receive settlement relief may be eligible for full or partial restoration of Pell eligibility under a law that went into effect on July 1, 2024.

    This law, which is part of the FAFSA Simplification Act, restores Pell eligibility for any period in which a student received a federal student loan that was later discharged under the Secretary of Education’s authority to “compromise, waive, or release” a loan obligation—a legal provision which forms the basis for settlement relief.

Class Membership Troubleshooting 

  • To ensure that you continue to receive timely information about the settlement, please update your contact information in your Federal Student Aid (FSA) profile. Log in to your account and navigate to the “Settings” page under your email address, phone number, or address. This is how the Department of Education will determine where to send you information and any potential refunds. For more information, visit the FSA’s help center page on this matter.

    You should also make sure to keep your servicer up to date regarding your contact information. If you’re not sure who your servicer is, this FSA webpage explains and helps you identify your servicer.

  • PPSL is aware of this issue, and we have raised it with the Department of Education. If you applied for Borrower Defense but have had trouble tracking your application, or have experienced errors in the Department’s record-keeping, please email sweet@ed.gov, with a copy to info@ppsl.org.

  • The class is represented by the non-profit legal services organization, The Project on Predatory Student Lending (PPSL). To contact PPSL, you should complete the form in the Get Help Tab at the top of the webpage. If you cannot fill out the form, you may email info@ppsl.org. Please note, we cannot provide individual legal advice. In addition, due to the high volume of communications we receive, all communications are reviewed but we are not always able to respond.