Schools File Notice of Appeal in $6 Billion Borrower Defense Settlement
Intervenors seek to delay and deny approved settlement relief for over 200,000 borrowers in Sweet v. Cardona
SAN FRANCISCO – Schools that attempted to block the landmark borrower defense settlement in Sweet v. Cardona have filed an appeal and motion to stay the settlement with the US Department of Education, which won final approval on November 16, 2022. The settlement would cancel at least $6 billion in student loans for approximately 200,000 individuals with pending borrower defense applications.
Statement from Eileen Connor, President and Director of the Project on Predatory Student Lending:
“This appeal demonstrates just how desperate these schools are to deny justice for borrowers, and we will not stop fighting until students get the relief they deserve. The court’s decision granting approval of this settlement is clear and unequivocal, and we are confident the 9th Circuit will agree with Judge Alsup that these claims are without merit. As ever, we will continue to see this case through to the end.”
Sweet v. Cardona (previously Sweet v. DeVos) was filed in the United States District Court for the Northern District of California in 2019 by seven named plaintiffs, on behalf of themselves and all federal student loan borrowers whose borrower defense claims for loan cancellation were being ignored by the Department of Education. The plaintiff class includes approximately 264,000 class members who make up the current borrower defense backlog.
The borrowers are represented by the Project on Predatory Student Lending (PPSL) and Housing and Economic Rights Advocates (HERA).
For more details on the settlement, visit the FAQ on our website.
About the Project on Predatory Student Lending
Established in 2012, the Project on Predatory Student Lending represents over a million former students of predatory for-profit colleges. Its mission is to use litigation to eliminate predatory practices in higher education, and to relieve current and future borrowers from fraudulent student loan debt. PPSL has won landmark cases to protect borrower rights, recover money owed, and cancel more than $10 billion in fraudulent debt. Its ongoing cases hold predatory colleges accountable and force the U.S. Department of Education to act on behalf of students and stop protecting this insidious industry.
About HERA
Housing and Economic Rights Advocates (HERA) is a California statewide, not-for-profit legal service and advocacy organization dedicated to helping Californians — particularly those most vulnerable — build a safe, sound financial future, free of discrimination and economic abuses, in all aspects of household financial concerns. It provides free legal services, consumer workshops, training for professionals and community organizing support, creates innovative solutions and engages in policy work locally, statewide and nationally.
###