Student Loan Discharge Emails Sent To 30,000 Borrowers As Settlement Relief Proceeds

The U.S. Education Department is sending student loan discharge notifications to approximately 30,000 borrowers this week, marking the final group eligible under the *Sweet v. McMahon* settlement agreement. The settlement, finalized in 2022, resolves a class-action lawsuit filed in 2017 by borrowers alleging unlawful delays or denials of Borrower Defense to Repayment applications—a program that discharges federal student loans for victims of school fraud or misrepresentation. This latest batch targets post-class applicants who attended non-Exhibit C schools and submitted claims between June and November 2022. Unlike the first group, these borrowers did not receive automatic relief but were entitled to a final decision within three years. If the Education Department failed to act, they would qualify for full discharge, refunds, and credit reporting corrections. The Project on Predatory Student Lending, representing borrowers in the lawsuit, confirmed the notices are arriving via email from *noreply@studentaid.gov*. Borrowers are advised to check spam folders and update their Federal Student Aid contact information to avoid missing communications. The department has until June 15 to distribute all notices. The *Sweet v. McMahon* settlement originally covered over 500,000 borrowers who attended Exhibit C schools—mostly for-profit institutions—and received automatic relief. Post-class applicants, however, faced uncertainty until now, with the latest emails signaling the end of the relief process for this group. Despite the progress, critics argue the Education Department has repeatedly delayed similar relief efforts. The settlement remains one of the largest student debt cancellations in U.S. history, benefiting borrowers defrauded by predatory institutions.