Something about seeing a legal settlement that took years to reach just not be honored is quietly frustrating. That’s where things stand now with Sweet v. McMahon, the federal lawsuit that sought to discharge student loans and gave real hope to thousands of scammed borrowers. It was told to do something by the Department of Education. There were due dates. Then, the due dates for more than a thousand people who were still waiting for loan cancellations and refunds just went by without being met.
More than 1,000 people in the Sweet class are still sitting there with unresolved stress. At least 122 borrowers are in a group called the “Automatic Relief Group,” which sounds like they will get help quickly or even for sure. Still, their discharges are still late. Another 929 borrowers in Decision Groups 1 through 4 are still waiting. Some of them have been waiting for almost 18 months, past the date when they were supposed to get help.
The Project on Predatory Student Lending (PPSL) officially told the Department of Education and the Department of Justice on June 18, 2026, that the Sweet settlement agreement had been broken in a way that was important. That notice is more than just paper work. It is required by law before you can ask a federal court to step in and make people follow the rules. The fact that it had to be done says something about the speed of the bureaucracy, the resistance of institutions, and maybe even how seriously the current administration takes this duty.
It’s still not clear if the breach notice will speed things up or just make the process take longer. The Department of Education has already gone to the Ninth Circuit Court of Appeals about deadlines for making decisions after class, which doesn’t show that they are in a hurry to close the gap. Even though the case was settled, it seems like it will still have a long way to go.
Borrowers who are seeing their account balances change for no reason should know that this is a normal part of the discharge process, according to PPSL. Loans are being paid off by the servicers, which may appear odd on a statement. But it’s important to know that knowing the technical side of things doesn’t always make it less scary to see numbers change on an account you’re trying to stop worrying about.
People from Exhibit C schools who applied for post-class jobs and still hadn’t heard back by the end of January are eligible for full settlement relief. By late March, the Department’s notice should have arrived. For those from non-Exhibit C schools who hadn’t heard anything by the middle of April, they were supposed to hear by the middle of June. Borrowers are being told to check all of their inboxes and spam folders first to see if those emails ever came. This is good advice, but it also shows how badly communication has been around this process.
It is hard to look away from this situation because of the type of borrowers involved. People in this group went to predatory schools, were lied to about how valuable their education was, and went through a long legal process. It was supposed that the hardest part would be over once they won in court or reached a settlement. At the very least, it’s interesting to see the government miss its own deadlines, appeal court orders, and need a formal breach notice to get people to take action.
PPSL has promised to keep an eye on things and keep you informed as new information comes in. The next important date is July 28, which is when Decision Group 5’s relief is due. The question that every borrower who is still waiting for a discharge that was promised to them is whether that deadline will be met or if it will follow the same pattern as others.
