Navigating the Sweet v. Cardona Settlement: A Guide for Student Loan Borrowers

The Sweet v. Cardona (formerly Sweet v. DeVos, Sweet v. The Latest) settlement represents a significant victory for student loan borrowers who were defrauded by predatory colleges. This article provides a comprehensive overview of the settlement, key dates, and the rights of borrowers.

Background of Sweet v. Cardona

The Sweet v. Cardona lawsuit was initiated by named plaintiffs on behalf of themselves and other federal student loan borrowers whose Borrower Defense applications had been ignored by the Department of Education, in many cases since 2015. These borrowers asserted their right under federal law to discharge their federal student loans due to their schools’ misconduct. The lawsuit aimed to compel the Department of Education to adjudicate these claims.

Over several decades, millions of students borrowed federal student loans to attend for-profit colleges such as ITT Technical Institute, Corinthian Colleges, the Art Institutes, Salter College, and Brooks Institute of Photography. By June 2019, over 200,000 students had pending borrower defense applications, many unresolved for nearly four years. Plaintiffs uncovered evidence that the Department’s policies had stacked the deck against borrowers. The settlement agreement resolves these long-pending applications and delivers justice to borrowers.

Key Provisions and Dates of the Settlement

Settlement Approval and Implementation

August 4, 2022: The court granted preliminary approval of the new settlement.
November 16, 2022: The court granted final approval of the settlement.
March 29, 2023: The Ninth Circuit denied the intervenor schools’ motion to stay the settlement pending their appeals. This meant that settlement relief could proceed for class members from Lincoln Tech, Keiser/Everglades, and American National University, and would continue on course for everyone else.

Disputes and Enforcement

March 19, 2024: Borrowers filed a motion to enforce the Settlement Agreement due to the Department’s failure to effectuate full settlement relief for the Automatic Relief Group by the January 28, 2024, deadline. The court ordered the Department to notify loan servicers to appear for a hearing on April 24, 2024.
April 24, 2024: The court adopted a schedule for the Department to remedy its admitted material breach of the Settlement Agreement and imposed conditions to monitor the Department’s compliance, including monthly in-person hearings and bi-weekly in-person meetings attended by the Department, the servicers, and plaintiffs’ counsel.
May 24, 2024: As a further condition to monitor the Department’s compliance, the court permitted plaintiffs’ counsel to access the FSA Ombudsman’s office to inspect records and to “look over the shoulder” of the Ombudsman to ensure accountability and progress.
September 26, 2024: In response to the Department’s further breach of the Settlement by failing to deliver timely relief to Decision Group 1, the court ordered Full Settlement Relief for Decision Group 1 by December 20, 2024, and for Decision Group 2 by January 28, 2025. The court mandated that the same relief methodology be used for these Decision Groups as for the Automatic Relief Group.
November 5, 2024: The Ninth Circuit Court of Appeals ruled in Plaintiffs’ favor, rejecting the attempt by three intervenor schools to overturn the Settlement.
December 12, 2024: The court denied the Department’s motion to use a different relief calculation method and ordered that the methods adopted for implementing relief for the Automatic Relief Group and Decision Groups 1 and 2 shall be used for Decision Groups 3, 4, 5, and the Post-Class.

Post-Class Applicants

February 24, 2026: The court denied the Department of Education’s request to further delay the decision deadline for post-class applicants. The hearing previously scheduled for March 26th to address the Department’s request has been cancelled.
February 27, 2026: The Department of Education filed a motion to stay in the Ninth Circuit Court of Appeals in yet another attempt to delay settlement relief in the Sweet case.
March 29, 2026: ED owes Exhibit C post-class applicants who did not receive decisions by the deadline a notice of eligibility for full settlement relief.
April 15, 2026: Deadline for ED to issue decisions to remaining post-class borrowers.

Project on Predatory Student Lending (PPSL)

The Project on Predatory Student Lending (PPSL) has been instrumental in advocating for borrowers' rights throughout the Sweet v. Cardona litigation. PPSL provides resources and support to borrowers navigating the settlement process. Eileen Connor, president and director of the Project on Predatory Student Lending (PPSL), said in a statement after the high court’s decision, "Today’s swift and decisive action from the highest court should end, once and for all, any ongoing debate about the legitimacy of this settlement."

PPSL's Role and Statements

PPSL actively monitors the Department of Education’s compliance with the settlement terms and advocates for borrowers' interests in court. When the Department failed to deliver timely relief to Decision Group 1, the court ordered Full Settlement Relief for Decision Group 1 by December 20, 2024, and for Decision Group 2 by January 28, 2025. The court mandated that the same relief methodology be used for these Decision Groups as for the Automatic Relief Group.

Impact on Borrowers

As of May 2025, the Sweet settlement has delivered relief to over 271,000 borrowers and counting. The settlement provides a pathway for borrowers who were defrauded by predatory schools to have their federal student loans discharged.

Individual Stories

Theresa Sweet, lead plaintiff in Sweet v. Cardona, shared her experience: "On the day I graduated college, I never imagined that I would find myself locked in a nearly 20 year battle for justice against a for-profit education company that defrauded me, and against the federal government for failing to protect me from this fraud. More than a quarter million defrauded students have been waiting far too long for justice that should have come without delay, but for which we instead had to fight tooth and nail. But we didn’t give up. Defrauded borrowers stepped up to the plate over and over to share their stories, speak to the court, and refuse to take any of this lying down. Now, when I look back at the day I graduated from college, I think of a lesson my school never taught me - know your rights, and never stop fighting for them."

Legal and Court Actions

Key Court Filings and Decisions

February 24, 2026: Order Denying Defendants' Motion For Relief.
February 5, 2026: Plaintiffs’ Opposition To Defendants’ Motion For Relief From Judgment.
January 30, 2026: Plaintiffs' Opposition to Defendants' Administrative Motion for Ruling Without Hearing or Specially Set Hearing Date; Plaintiffs' Opposition to Defendants' Administrative Motion to Extend Deadline to Appeal the December 11, 2025, Order.
January 22, 2026: Defendants' Motion for Relief Under Rule 60(b).
November 20, 2025: Plaintiffs’ Opposition and Motion To Strike Defendants’ Motion For Relief From Judgment.
November 6, 2025: Defendants' Motion for Relief from Judgement.

Department of Education's Actions

The Department of Education has faced scrutiny throughout the settlement process due to delays and breaches of the settlement agreement. The court has intervened multiple times to ensure compliance and protect borrowers' rights.

Implications and Future Outlook

The Sweet v. Cardona settlement marks a significant step toward holding predatory schools accountable and providing relief to defrauded borrowers. The ongoing monitoring and enforcement efforts by the court and PPSL are crucial to ensuring that the settlement's promises are fully realized.

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