Navigating Everglades Student Loans: Understanding Recent Court Decisions and Forgiveness Programs
The landscape of student loans can be complex, particularly for those who attended institutions like Everglades University. Recent court decisions and settlement agreements have significantly impacted borrowers, offering potential pathways to loan forgiveness. This article breaks down these developments and provides crucial information for students with Everglades student loans.
The Sweet v. McMahon Case: A Path to Loan Forgiveness
The Sweet v. McMahon case (formerly named Sweet v. Secretary of Education) is a pivotal class action lawsuit addressing stalled or rejected student loan forgiveness requests under the Borrower Defense to Repayment program. This program offers a route to discharge federal student loans based on specific instances of school misconduct, such as misrepresentation or false claims about educational programs, career prospects, or potential earnings.
A 2022 settlement agreement in the Sweet v. McMahon case brought about automatic student loan forgiveness and other forms of relief for numerous borrowers who attended particular schools. For those who submitted Borrower Defense applications after the settlement's approval but before its formal entry into court ("post-class applicants"), the agreement stipulated that the Education Department must process these applications by the end of January 2026. Failure to meet this deadline would entitle these borrowers to an automatic discharge of their federal student loans, along with other settlement benefits.
Court Rejects Delay Tactics: Relief for Borrowers
In a significant victory for borrowers, the court overseeing the Sweet v. McMahon settlement rejected the Education Department's second attempt to delay providing settlement relief to post-class applicants. The department had missed the January 28, 2026, deadline for reviewing nearly 170,000 Borrower Defense applications submitted by these applicants. Under the terms of the settlement, this triggered their entitlement to complete relief, including student loan forgiveness, refunds of past payments, and corrections to any associated credit damage.
The court emphasized that the Education Department had not signaled any potential difficulties in meeting the deadline until shortly before it arrived. The court found no "extraordinary circumstances" justifying the delay, reinforcing the importance of adhering to court orders.
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Eileen Connor, President and Executive Director of the Project on Predatory Student Lending (PPSL), the legal organization representing the student loan borrowers in the Sweet case, stated that the court's decision sends a clear message that "court orders are not optional."
Supreme Court Upholds Settlement: No Obstacles Remain
Adding to the positive momentum for borrowers, the Supreme Court declined to hear a separate appeal from a coalition of schools, including Everglades College, Lincoln Educational Services Corporation, American National University, and the Chicago School of Professional Psychology, seeking to block settlement relief for some student loan borrowers under Sweet v. McMahon. These institutions had attempted to intervene in the case, but their efforts were consistently rejected by lower courts. The Supreme Court's decision effectively upholds the Sweet v. McMahon settlement agreement and all associated relief, including student loan discharges.
Connor of PPSL emphasized that the Supreme Court's decision confirms that Everglades and the other intervenors had no legitimate basis to challenge the agreement.
Implications for Borrowers: What to Expect
These dual court rulings pave the way for Sweet v. McMahon settlement relief to proceed for post-class applicants. This includes automatic discharges of student loans for covered borrowers and refunds of past payments.
Borrowers who are set to receive full Sweet v. McMahon settlement relief should receive a notice from the Education Department stating their eligibility by March 29, 2026. Relief should be delivered within one year of receiving that notice. Post-class applicants who did not attend an Exhibit C school are owed a decision from ED by April 15.
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Everglades University's Role and Resources
Everglades University's Financial Services Department assists students in applying for financial aid to cover their educational expenses. The department maintains procedures to ensure fair and consistent treatment of all applicants.
The university emphasizes that students and their families bear the primary responsibility for educational costs. However, financial aid is available to bridge the gap between a student's resources and their actual needs. Everglades University uses the Free Application for Federal Student Aid (FAFSA) to determine a student's eligibility for financial aid.
Students are encouraged to schedule appointments with a Financial Services Administrator at their campus to ensure they obtain the necessary funding for their education.
Private Student Loans: A Secondary Option
Everglades University clarifies that it does not make recommendations regarding lender selection. Private student loans should only be considered after applying for federal financial aid. These loans are available to students who have exhausted all other avenues of obtaining funding and require additional assistance beyond their financial aid eligibility.
Students and their cosigners are encouraged to thoroughly review each lender and make their own informed decision. The university may provide a list of lenders that students have used in the past, but this list does not indicate any rank or preference. Students are free to borrow from any lender of their choice.
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The Intervenors' Attempt to Overturn the Sweet Settlement
In the class action lawsuit Sweet v. McMahon (formerly Sweet v. Everglades), Everglades was one of three intervening schools seeking to overturn the Sweet settlement, which was approved in November 2022. The settlement cancels more than $6 billion in student loans, impacting more than 500,000 borrowers. After a three-judge panel of the Ninth Circuit ruled against the intervenors in November 2024, Everglades sought a rehearing before a larger panel to reconsider that decision. The Ninth Circuit has now denied the petition, meaning the panel decision stands. The deadline for the intervenors to seek Supreme Court review of the Ninth Circuit decision is August 19, 2025. Meanwhile, since February 2023, nearly 250,000 class members have received full settlement relief.
PPSL's Advocacy for Student Borrowers
The Project on Predatory Student Lending (PPSL) at the Legal Services Center at Harvard Law School co-represents the plaintiffs in the Sweet v. Cardona settlement. PPSL uses bold, strategic litigation and advocacy to demand accountability in the higher education space and influence policy solutions to create a more just and affordable education system.
SCOTUS Rejects Colleges' Emergency Application
Earlier this month, three colleges - Everglades College, Lincoln Educational Services Corporation, and American National University - filed an emergency application to SCOTUS asking it to halt a $6 billion student loan debt settlement. In the emergency application to SCOTUS, the colleges argued that Education Secretary Miguel Cardona has abused his authority to use the Higher Education Act (HEA) to cancel those borrowers’ student loan debt. That emergency application was in response to a settlement in the Sweet v. Cardona case, a class action lawsuit that stipulates that the Department of Education (ED) will discharge more than $6 billion owed by approximately 200,000 borrowers who collectively attended 151 institutions and said they were defrauded by their schools. But on Thursday, SCOTUS rejected that effort.
As of Tuesday, April 11, approximately 78,000 borrowers of the 196,000 borrowers eligible for automatic relief had their loans discharged. Approximately 3,800 borrowers who attended Everglades College, Lincoln Educational Services Corporation, and American National University are eligible to get their loans discharged.
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