A court dismissed the Trump administration’s attempt to end the SAVE student loan plan in February 2026 — but 22,000+ borrowers who completed their IDR payments are still waiting on discharges. Here’s what the ruling means for you, and the tax trap no one is warning borrowers about.
Quick Answer: Under the Sweet v. McMahon settlement, the Education Department missed its January 28, 2026 deadline to review 170,000+ Borrower Defense applications. These borrowers are now legally entitled to automatic discharge, refunds of prior payments, and credit correction—but the Department is fighting for an 18-month delay.Update (July 2026): This case has moved a long …
A federal judge rejected the Education Department’s request to delay Borrower Defense decisions. If no decision comes by January 28, roughly 200,000 borrowers get automatic loan forgiveness worth $12 billion.
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