The Ninth Circuit’s July 17, 2026 ruling rejected the Department of Education’s appeal in Sweet v. McMahon. Here’s who gets automatic discharge and who doesn’t.
Sweet v. McMahon borrower defense deadline is April 15, 2026. Here’s who qualifies for automatic student loan discharge and exactly what to do now.
Ninth Circuit rejects Education Department’s emergency appeal, clearing student loan discharges for 205,000 Sweet v. McMahon borrowers. Notices start next week.
Court records show the Education Department’s own attorneys promised 170,000 student loan borrowers full automatic relief at three federal court hearings in 2025. Five months after the last promise, they asked for 18 more months. A federal judge called it ‘eleventh hour,’ documented ‘repeated failures,’ and closed with: ‘No further motions will be entertained.’
Two court rulings in 48 hours cleared the path for automatic student loan discharges to proceed for 170,000+ borrowers. The Supreme Court upheld the Sweet v. McMahon settlement, and a federal judge denied the Education Department’s second attempt to delay. Here’s who qualifies and what to do.
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 …
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